Barrons – Beware the Minuses of Negative Interest Rates Whether sub-zero interest rates actually work is open to debate, however. So says Richard Koo, the chief economist of the Nomura Research Institute. “In my view,” he writes, “the adoption of negative interest rates is an act of desperation born out of despair over the inability… Continue reading Negative Rates
Charts of the Week Topics Covered This Week Include: Fed’s Fischer Speaks Are Lower Crude Oil Prices A Credit Event? Are Lower Crude Oil Prices A Credit Event? – 2 Still Bullish On Crude, Still Losing Buckets Of Money Still Bullish On Crude, Still Losing Buckets Of Money – 2 Alphabet (Google) Tops Apple In… Continue reading Charts of the Week
Comment Jim Bianco was on CNBC yesterday discussing the wealth effect and the Federal Reserve. To view the interview, click on the image above. To view any of our recent interviews, click here. Jim made the case that unconventional monetary policy (QE and/or negative rates) pushes markets around but not the economy. Regarding unconventional policy’s… Continue reading Discussing The Fed
<Click on chart for larger image> The Financial Times – Martin Sandbu: Free Lunch: Four takes on the Fed fumble A mistake can be many different things Remember September? Markets seemingly couldn’t wait for the Federal Reserve to raise interest rates — though they had to be patient until the first rate hike finally came… Continue reading Timing The Rate Hikes: The Fed vs. The Planet
Think Advisors – Bernice Napach: Why Are Stocks Falling in Sync With Oil Prices? Jim Bianco, president of Chicago-based Bianco Research, said, “Crude oil has become a credit event as opposed to a consumer event…a big credit event the financial sector has to deal with. … Banks lent the energy patch billions of dollars and… Continue reading Are Lower Crude Oil Prices A Credit Event?
<Click on chart for larger image> Bloomberg Business – Oil Prices Could Jump 50% by the End of 2016 WTI seen averaging near $46 a barrel in Q4; Brent at about $48 Oil bulls distressed that last week’s rally fizzled can find some comfort in forecasts for a bigger and longer rebound by the end… Continue reading More Crude Oil Bulls
<Click on chart for larger image> Bloomberg.com – Volatility Indexes Show Oil and Stocks Link Diminishing One place where stocks and oil prices are showing a significant divergence is in volatility. The relationship between two gauges that track present and expected swings in the assets is widening as crude prices become ever more volatile and… Continue reading Crude Oil Volatility
<Click on chart for larger image> Comment The negative talk from companies is taking its toll on Q1 earnings expectations (chart above). Reuters.com – U.S. CEOs unleash recession fears in earnings calls U.S. companies are growing more concerned about the prospects of a recession in the year ahead for the first time since the end… Continue reading Recession Talk and Earnings
<Click on graphic for larger image> <Click on graphic for larger image> Bloomberg Business – Deutsche Bank’s Jim Reid: Just Wait ‘Til Corporate Bonds Go Negative, Too Deutsche Bank Strategist Jim Reid has posited that it’s only a matter of time before yields on corporate bonds sold by investment-grade European companies dip below zero in… Continue reading Corporate Bonds
<Click on chart for larger image> Bloomberg.com – Citi Asked Its Clients if We’re Heading Into a Bear Market, and This Is What They Said Is it a bear? Is it a correction? No, it’s a markets mystery! Respondents to a recent Citigroup Inc. survey appeared divided over the state of the stock market sell-off,… Continue reading Bear Market vs. Correction
Zero Hedge – The January Bear-ometer Very weak January’s have had a tendency to lead to weak long-term returns in the stock market. Investors must be thinking, “thank God February is here.” Well, before we put the brutal January to rest, we have one more depressing post. We wrote several posts throughout January on the… Continue reading The January Barometer