Bloomberg Gadfly – Nir Kaissar: Trump Puts U.S. Valuation Premium at Risk I’m not suggesting that the U.S. is comparable to an emerging country. But the new administration should be mindful that the developed-market premium is a privilege, not a right. It depends in large part on investors’ belief that a country has stable institutions and… Continue reading EM Equities Less Risky Than Developed?!
<Click on image to view video> Comment Jim Bianco was on Bloomberg TV yesterday discussed a variety of market related subjects. In the clip above, Jim discussed the Fed under President Trump and the possibility of Yellen leaving after her term ends in January 2018. To view the interview, click on the image above. To… Continue reading Bringing Business Back To The Fed After Yellen’s Term Ends
Bloomberg – BofAML’s Francisco Blanch Sees $70 Brent Crude by Summer Francisco Blanch, global head of commodities and derivatives research at Bank of America Merrill Lynch, discusses President Donald Trump’s energy policies and the outlook for crude oil prices. Comment What a difference a year makes … Bloomberg – (February 12, 2016) The Oil Industry… Continue reading Crude Oil, What A Difference A Year Makes
<Click on chart for larger image> Bloomberg Markets – Yellen Sets High Hurdle for Reducing Fed’s Massive Bond Holdings Federal Reserve Chair Janet Yellen set a relatively high hurdle for shrinking the central bank’s balance sheet, leading some analysts to conclude that such a move won’t occur this year. She told the Senate Banking Committee on… Continue reading Yellen On Reducing The Fed’s Balance Sheet
The Wall Street Journal – Trump’s ‘Stew of Uncertainties’ Puts Hedge-Fund Managers on Alert Wall Street’s early exuberance at the election of President Donald Trump is giving way to reticence and in some instances outright hostility. Billionaire hedge-fund managers and day traders initially cheered Mr. Trump’s surprise win, propelling major U.S. indexes to all-time highs on… Continue reading Should Investors Worry About Trump?
Bloomberg View – Charles Lieberman: The Fed Is Behind the Curve .. Investors do not yet realize that monetary policy is too accommodative and that rates are too low. Bonds have sold off sharply since the election, as investors recognized that a more expansionary fiscal policy is coming. But, the decline in bond prices has… Continue reading Why The Fed Is Behind The Curve
<Click on graphic for larger image> Bloomberg Gadfly – Nir Kaissar: Trump Puts U.S. Valuation Premium at Risk .. As two thoughtful observers — Bloomberg’s Matt Levine and blogger Josh Brown — pointed out recently, the developed-market premium is simply about risk. Emerging countries tend to have less stable governments and institutions than developed ones.… Continue reading U.S. Valuation Premium And Trump
<Click on graphic for larger image> Bloomberg Business – Inflation Alarms Expose Vulnerability in Richly Priced S&P 500 Higher inflation tends to be associated with lower valuations Investors have spent a decade beseeching heaven for inflation. Given the market’s vulnerability to valuation shocks, they should be careful what they pray for. While pricing power is an… Continue reading The Threat Of Inflation
Bloomberg View – Barry Ritholtz: The Middle Class Squeeze Isn’t Made Up .. As I’ve said before, there are many reasons to dislike this economic recovery: it has been lumpy and unevenly distributed by geography, by industry and by level of educational attainment. Much of that has harmed people who were once considered middle class. Add… Continue reading The Middle Class Squeeze
MarketWatch.com – Caroline Baum: ‘Fed Up’ exposes the elite rot inside the Federal Reserve … What is the appropriate overnight rate? If Fed policy makers missed the housing bubble, the financial crisis, the productivity slowdown, and regular forecasts for growth and inflation, how are they supposed to pick the rate that will keep the economy growing… Continue reading Exposing The Culture At The Fed
Bloomberg Business – This is What Happens in Inflation’s Year-Long Afterlife … This is what economists call a “base effect.” Given that inflation is calculated as a year-on-year rate, a big change from one month to the other can have large effects 12 months later, when that swing drops out of the calculation. In the case… Continue reading Is Inflation In The Eurozone Stable?