<Click on chart for larger image> Factset – Highest Trailing 12-Month P/E Ratio for S&P 500 since 2010 Yesterday, the value of the S&P 500 index closed at yet another all-time high at 2185.79. The trailing 12-month P/E ratio for the S&P 500 now stands at 19.5, based on yesterday’s closing price (2185.79) and trailing… Continue reading Lofty Stock Valuations
This Is Money (UK) – Chief economist says Bank of England policy moves only offer ‘short term balm’ for post-Brexit vote uncertainty The Bank of England’s chief economist has said monetary policy can only offer a ‘short-term balm’ for the uncertainty facing Britain’s economy following Brexit. In an opinion piece published in the Sunday Times newspaper,… Continue reading The BoE’s Search For Gilts
The Wall Street Journal – Some Traders Betting Wall Street’s ‘Fear Gauge’ Will Double in a Month Traders are piling into call options on the VIX, in a bet that stock markets are about to get more volatile The index–often referred to as Wall Street’s “fear gauge”–is a measure of how much investors expect the… Continue reading Betting On Volatility
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Comment Yesterday we hosted a conference call titled Helicopter Money and Interest Rates. The mp3 and handout are below. Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/072116.mp3|titles=Conference Call ] Webcast (download if flash video does now work below) [hana-flv-player video=”https://www.biancoresearch.com/bianco/SubscriberArea/081116.flv” width=”600″ height=”495″ description=”” player=”3″ autoload=”false” autoplay=”false” loop=”false” autorewind=”false” skin=”functional” /] [pageview class=”PDFViewer” url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=322″]
<Click on chart for larger image> The Wall Street Journal – Stocks Hit New Highs, and That Could Be Just the Start Some traders see the makings of a ‘melt-up,’ or surge from record levels A troika of stock indexes hit records in tandem for the first time since 1999. The question is whether the party… Continue reading Stocks Enjoying Another Sugar High?
<Click on chart for larger image> The Wall Street Journal – WSJ Survey: Economists Point to December Rate Increase for Fed About 71% expect the Fed will next raise short-term rates at its Dec. 13-14 meeting A consensus is forming among economists that the Federal Reserve will hold off on its next interest-rate increase until… Continue reading When Will The Fed Hike Next?
The Financial Times – Time looks ripe for ultra-long US bonds TBAC is the private sector body that meets quarterly with the Treasury’s senior officials to discuss the optimal way for the US government to finance itself. Lately the focus has been on boosting issuance of short-term bills to feed the ravenous appetite of money market… Continue reading Should The Treasury Issue Bonds Longer Than 30-Years?
The Wall Street Journal – Economists See Election-Induced Uncertainty Harming U.S. Economy Respondents to WSJ survey cut their forecasts for 2016 GDP growth to 1.8% from 2% For the first time in this election cycle, most economists surveyed by The Wall Street Journal believe uncertainty from the coming election is crimping economic activity. While every… Continue reading The Election And The Economy
<Click on graphic for larger image> The Wall Street Journal – China Slows as Stimulus Impact Wanes China’s economy remains in a downtrend as investments and industrial production slow A swath of economic activity—from factory output to investment and retail sales—slowed last month, reflecting renewed weakness in China’s economy as the effects of earlier government stimulus wane.… Continue reading China’s Economy
<Click on chart for larger image> Bloomberg.com – Lisa Abramowicz: The $14.2 Billion Cost of Spiking Libor Most benchmark yields have plunged to record lows this year. But there’s one important exception: the dollar London Interbank Offered Rate, or Libor, which has shot up to the highest level since 2009. This matters because as much as… Continue reading Surging LIBOR
<Click on graphic for larger image> Bloomberg.com – Central Banks’ Waning Appetite Seen in Currencies, JPMorgan Says Kiwi surges to highest since May 2015, even after rate cut Markets trade on ‘end-of-cycle phenomenon,’ Normand says Foreign-exchange traders are becoming convinced that monetary stimulus programs around the world have reached their limits in efforts to spark economic growth,… Continue reading Currencies And Central Banks