Associated Press – Markets to face slowing company profits after China tumult Tumult in China triggered the worst opening week for US stocks in history, and now investors have to face what analysts expect will be a weak earnings season Tumult in China triggered the worst opening week for U.S. stocks in history, and this… Continue reading U.S. Stocks And China
The Financial Times – Lawrence Summers: Heed the fears of the financial markets They understood the gravity of the 2008 crisis well before the Federal Reserve Policymakers who dismiss market moves as reflecting mere speculation often make a serious mistake. Markets understood the gravity of the 2008 crisis well before the Federal Reserve. They grasped… Continue reading Larry Summers Speaks
<Click on chart for larger image> Bloomberg Business – Gold Extends `Great Start to 2016′ as Risk Aversion Fans Demand Gold climbed near to a two-month high on increased haven demand as further signs of slowing growth in China spurred losses in equities. Bullion for immediate delivery advanced as much as 0.4 percent to $1,108.65… Continue reading Gold Off To A Good Start In 2016
“The Fed got it wrong when it predicted a drop in oil prices would be a big boon for the economy,” he said. “It turned out the world had changed; the US has a lot of jobs connected to the oil industry.” Forex Live – Adam Button: This quote from Williams shows everything that’s wrong… Continue reading Oil: The Fed Got It Wrong
MarketWatch.com – Robert R. Johnson: You can expect lower volatility in stock and bond prices as the Fed raises interest rates It seems that increased volatility is a foregone conclusion. While we indeed have witnessed volatile financial markets around the Fed announcement, what can we learn from market history about volatility in the long run… Continue reading Volatility As The Fed Raises Rates
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Comment Yesterday we hosted a conference call titled What To Look For In 2016. The mp3 replay, webcast replay and handout are linked below. We discussed: – The Economy – More of the same, “C-” growth, Not Sure Why The Fed Hiked – Earnings – Outlook Is Poor And Stocks Sill Struggling, Even Ex-Energy –… Continue reading What To Look For In 2016
Bloomberg.com – Ambrose Evans-Pritchard: Capital flight pushes China to the brink of devaluation Beijing cannot keep burning through reserves at a record pace to defend the yuan and at the same time loosen monetary policy. It has to choose China is perilously close to a devaluation crisis as the yuan threatens to break through the… Continue reading The Real Problem With China – Loss Of Confidence And Panicked Capital Flight
The Wall Street Journal – U.S. Added 292,000 Jobs in December, Capping Second-Best Year Since 1999 Employers capped last year with impressive job growth in December, the latest sign of a stable U.S. economy despite international headwinds that have worsened since 2016 began. Nonfarm payrolls increased a seasonally adjusted 292,000 in December, the Labor Department… Continue reading Employment In Pictures
<Click on graphic for larger image> The Economist – Buttonwood: Is this really 2008 all over again? But the 2008 parallel can only be sustained if we are talking about a debt bubble bursting, and Mr Soros specifically focused on China. To the extent there was euphoria and rampant speculation (as there was in 2006-07),… Continue reading A Repeat of 2008?
<Click on graphic for larger image> Bloomberg.com – The ‘Average’ Stock Is Already in a Bear Market The S&P 500 is down just over 7 percent from its May high, but the average stock in the larger S&P 1500 was down 24 percent from its high as of yesterday’s close, according to new research from Bespoke… Continue reading Measuring The Stock Market