Charts of the Week Topics Covered This Week Include: The Fed Is The Boy Who Cried Wolf Comparing The Old And Current Bond Fund Flows Fund Flows – 2 Rent’s Impact On Core Inflation Oil vs. Stocks An Earnings Update An Earnings Update Guidance Turns Higher Reviewing Bond Market Sentiment Reviewing Bond Market Sentiment –… Continue reading Charts of the Week
Bloomberg Business – Wall Street’s New Balance Sheet Is an ETF Over the past month, the biggest junk-bond exchange-traded fund has experienced extraordinary record-breaking daily withdrawals even though the broader market has encountered relatively little turbulence. In fact, these ETF flows have had little to no correlation with mutual-fund deposits or other gauges of investor… Continue reading Junk Bond ETFs
<Click on chart for larger image> The Wall Street Journal – Economic-Growth Surprises Are Dropping With Faster Release of Trade, Inventory Figures The U.S. government is expanding its effort to minimize surprises when estimating the nation’s economic growth. About a month after each quarter ends, the Commerce Department puts out an initial estimate for gross… Continue reading GDP Revisions
<Click on chart for larger image> MarketWatch.com – Caroline Baum: Five reasons the market is ignoring the Fed about rate hikes Federal Reserve officials have been asking — make that begging — the market for permission to raise rates at the June 15-16 meeting, getting only partial cooperation in return. The odds of a June… Continue reading The Fed vs The Market And Rate Hikes
<Click on graphic for larger image> The Wall Street Journal – Trillions in Debt—but for Now, No Reason to Worry U.S. household borrowing nears precrisis peaks; global debt has already topped 2008 levels If current trends persist through the end of the year, U.S. households will owe as much as they did at the peak… Continue reading More On Household Debt
<Click on graphic for larger image> LPL Research – Spinning Our Wheels The one-year anniversary of the S&P 500’s all-time high took place on May 21, 2016. Stocks have largely been spinning their wheels for the past year. The S&P 500 has failed to return to its May 21, 2015, record high for 12 months.… Continue reading More On A Year Without A New High
<Click on chart for larger image> The Wall Street Journal – Oil at $50: Where Are Crude Prices Headed Next? Oil’s rise above $50 a barrel for the first time in six months is a landmark for the market, but analysts appear to have no better idea as to how long this year’s crude rally… Continue reading Crude Oil Hits $50
<Click on graphic for larger image> The Wall Street Journal – Sovereign Default: It’s Not Personal, Just Business Government debt restructuring becomes routine as Greece, Puerto Rico show emptiness of ‘moral obligation’ to repay As a U.S.-controlled territory, Puerto Rico has less economic and fiscal autonomy than a true sovereign but more than a state.… Continue reading Sovereign Defaults
Bloomberg Business – In Repo Market That Ensnared Lehman, Risk of Fire Sale Lingers After four years of efforts, regulators and the financial firms with the most at stake have failed to extinguish systemic risk in a crucial short-term lending market that greases the wheels of trading in U.S. Treasuries. There’s a consensus on how… Continue reading The Repo Market
<Click on chart for larger image> Bloomberg Business – Hedge Funds May Lose 25% of Assets, Blackstone’s James Says The $2.9 trillion hedge-fund industry may lose about a quarter of its assets in the next year as performance slumps, said Tony James, Blackstone Group LP’s billionaire president. “It’s kind of a day of reckoning that… Continue reading Hedge Fund Assets May Fall 25% As Underperformance Continues
The Financial Times – Martin Wolf: The risks of central banks’ radical treatments Extreme monetary policy can have unintended consequences Have we reached the limits of monetary policy? No. The central banks’ medicine cabinet is still full. Yet using the old treatments more aggressively or using altogether new treatments creates political, financial and economic risks.… Continue reading Unintended Risks Of Extreme Monetary Policy
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