<Click on graphic for larger image> AQA – Peter Forbes: Gold Outlook Bullish Ahead of BoE Meeting Our outlook for gold is increasingly bullish as we wait for Thursday’s Bank of England meeting. Markets are expecting a rate cut and possibly additional action in August. The expected path of monetary policy in the UK is… Continue reading Bullish On Gold
<Click on graphic for larger image> Dr. Ed’s Blog – Aging Bull Charging Again Almost since the start of the bull market, I have observed that it has been a series of panic attack corrections followed by relief rallies to new cyclical highs and then new record highs (exceeding the October 9, 2007 previous record… Continue reading The Bull Market Charging Ahead
<Click on chart for larger image> Barron’s – The Future of Mutual Funds As the industry’s growth slows, expect the push toward ever-lower expenses to continue, with only the best stockpickers thriving. After a half-century of robust growth, the mutual fund industry seems to have stalled. Overall assets last year dipped 1.4%, to $15.7 trillion,… Continue reading The Future Of Mutual Funds
The Wall Street Journal – Greg Ip: Behind the Bond-Stock Divide Is a Big and Risky Bet on Central Banks Bond investors don’t expect economic catastrophe, they simply assume central banks will act as if catastrophe is around the corner Bond yields are plummeting—German 10-years Wednesday were the first in the eurozone to sell at… Continue reading More On The Stock/Bond Correlation
David Stockman’s Contracorner – Helicopter Money——The Biggest Fed Power Grab Yet This is beyond the pale because “helicopter money” isn’t some kind of new wrinkle in monetary policy, at all. It’s an old as the hills rationalization for monetization of the public debt—–that is, purchase of government bonds with central bank credit conjured from thin air.… Continue reading Why “Helicopter Money” Is Dangerous
The Wall Street Journal – The Fed’s New Froth Problem From an economic standpoint, it makes sense for the Federal Reserve to hold off on rates; but then there’s what’s happening with asset prices The past few weeks have been very good for the Fed. Its Brexit worries proved prescient and its inaction on rates… Continue reading The Fed’s Problem: The Lackluster Economy vs High Asset Prices
Bloomberg Business – Fed Says Economy Growing Modestly With Slight Price Pressures The U.S. economy expanded at a modest pace since mid-May amid “slight” price pressures and some softening in consumer spending, a report from the Federal Reserve’s 12 districts showed. “The outlook was generally positive across broad segments of the economy including retail sales,… Continue reading The Fed Explains Their Economic Outlook
The Wall Street Journal – How a Surprise Upturn in U.S. Growth Could Trigger the Next Recession Some economists, including a former top IMF official, warn market expectations for weak growth could spark financial turmoil Could the cause of the next U.S. recession be too much growth? That is one risk of an unprecedented environment in which investors… Continue reading Why Stronger-Than-Expected Growth Could Lead To A Recession
<Click on graphic for larger image> Bloomberg Business – Cheap Money Gets Cheaper as Rate Cuts Priced in Worldwide Central banks overseeing three fifths of the world’s economy are practically giving away money with benchmark rates of 1 percent or less. Borrowing is only getting cheaper: Economists predict the Bank of England will cut its… Continue reading Cheap Money Around The World
The Washington Post – Larry Summers: When the best umps blow a call If one assumes that public investment is basically unproductive, it is no surprise that it does not yield large economic benefits. There is still the question of if the 5 percent rate of return is misdescribed, whether or not CBO has made… Continue reading Larry Summers Speaks
None Today
Charts of the Week Topics Covered This Week Include: Q2 Earnings Season Starts This Week Q2 Earnings Season Starts This Week – 2 Yearly S&P 500 Earnings Expectations A Look At Company Guidance Trends A Look At The Labor Force Participation Rate Unemployment Rates A Look At Payrolls And Manufacturing Jobs High Yield ETFs Corporate… Continue reading Charts of the Week