<Click on chart for larger image> The Wall Street Journal – Jon Hilsenrath: Divided Federal Reserve Is Inclined to Stand Pat Low inflation leaves central bankers with little sense of urgency to boost interest rates Federal Reserve officials, lacking a strong consensus for action a week before their next policy meeting, are leaning toward waiting until… Continue reading No Fed Hike Next Week
<Click on graphic for larger image> The Wall Street Journal – Surge in Offshore Yuan Borrowing Rate Suggests China Intervention Move by banks in Hong Kong market, likely at behest of PBOC, seems aimed at bets against yuan The most vibrant market for yuan trading outside mainland China has turned into a key battleground for Beijing to… Continue reading Big Trouble In Little China?
The Wall Street Journal – In Market Tumult, Fear for the ‘Safest’ Investments Investors in dividend-paying stocks could be in for a rude awakening Investors who spent the summer floating serenely on mirror-calm markets have been frantically bailing out the boat in the past two days. Whether the storm that hit U.S. stocks on Friday and spread globally on… Continue reading Love For Dividend Stocks
CNBC – UK rebound after Brexit vote may be a mirage: S&P The U.K.’s economic rebound over the summer may prove “premature or even a mirage,” S&P Global Ratings said on Monday. The ratings agency pours cold water on data such as the August Markit/CIPS purchasing managers’ index (PMI) for the services sector, which showed a sharp… Continue reading Will Brexit Turn Out Bad For The UK?
<Click on chart for larger image> The Wall Street Journal – Bond Markets Just Waking Up to Their Own Craziness Risk seen in decisions being made on the basis of ultralow and negative government-bond yields The bond market has been turned on its head by central banks—and the market’s tantrum shows it.Last week brought a string… Continue reading Bond Market Craziness
<Click on graphic for larger image> Bloomberg.com – Pimco Bond Fund Cuts Bet as Dimon to Gundlach Warn on Rates Path Pacific Investment Management Co.’s Total Return Fund, the world’s biggest actively run debt fund, is trimming its bet on bonds. Total Return cut the duration of its holdings to 5.27 years as of Aug. 31 from… Continue reading Bond Bearishness Returns
The New York Times – The Bull Is Still Running. So Why Are Investors Tiptoeing? Wall Street seems unable to make up its mind about risk-taking. The market declined sharply on Friday, yet all three major domestic stock indexes are still near their highs. Shares of speculative small companies have been outpacing stable blue-chip stocks lately. And… Continue reading Bull Markets Climb A Wall of Worry
<Click on graphic for larger image> Bloomberg.com – IEA Changes View on Oil Glut, Sees Surplus Enduring in 2017 Faltering Asian demand has weighed on consumption this quarter Market set for fourth year of surplus as Gulf OPEC pumps more The surplus in global oil markets will last for longer than previously thought, persisting into late 2017… Continue reading The Oil Glut Continues
<Click on chart for larger image> Barron’s – Junk Bonds Suddenly Look Vulnerable. Now What? The high-yield sector, up 20% in seven months, fell nearly 1% on Friday. It could be just the start of a correction. “Frothy” is a good word to describe last week’s high-yield market. The seven-month return for the sector reached 20%—remarkably… Continue reading Junk Bond Market
<Click on graphic for larger image> Bloomberg.com – Some of the Biggest Hedge Funds Are Bleeding Cash Institutional clients sour on industry after mediocre returns Perry Capital’s assets have plunged 60% since September 2015 Hedge funds have suffered their biggest withdrawals since the financial crisis, with investors pulling $23.3 billion in the first half of the 2016,… Continue reading Bailing Out Of Hedge Funds
<Click on graphic for larger image> CNBC – Slow growth forecast weighs on Fed rate hike decision The U.S. economy is barely growing, but it’s expected to keep moving ahead fast enough to prompt Federal Reserve officials give serious thought to raising interest rates when they meet next week. That view was offered up by Atlanta… Continue reading The Slow Growth Economy And Fed Policy
<Click on cartoon for larger image>