<Click on graphic for larger image> Bloomberg.com – Greenspan’s Nightmare Chart Spoils Labor Department Data Party Entitlement spending set to crowd out investment, he argues Ex-Fed chair is `terribly concerned’ and `a lot frustrated’ Using 50 years of government figures, Greenspan found an inverse relationship between entitlement outlays and gross domestic savings, implying that as… Continue reading Greenspan Speaks (Remember Him?)
Financial Post (Canada) – Money is flooding out of Canada at the fastest pace in the developed world Money is flooding out of Canada at the fastest pace in the developed world as the nation’s decade-long oil boom comes to an end and little else looks ready to take the industry’s place as an economic driver.… Continue reading Capital Flight From Canada
The New York Times – China Aims for 6.5% Economic Growth Over Next 5 Years, Xi Says President Xi Jinping of China announced on Tuesday that the Communist Party and the national government had set a 6.5 percent target for annual economic growth from 2016 to 2020. The announcement, an apparent attempt to temper expectations… Continue reading China Lowers Its Hard Landing Level
Chart 1: U.S. Corp Profit Growth (1993-2015) <Click on graphic for larger image> Chart 2: U.S. Yield Curve (1993-2015) <Click on graphic for larger image> Janus – Bill Gross: It’s the Zero Bound Yield Curve, Stupid! Historically, central banks have comfortably relied on a model which dictates that lower and lower yields will stimulate aggregate… Continue reading Bill Gross Speaks
Bloomberg Business – Paul Singer Says Aug. 24 Shows Stock, Bond Markets Are ‘Unsound’ “All of the innovations and complexity in the modern world of finance combine in different ingredients at different times with different catalysts to create fragility, not stability,” he wrote in a note to clients dated Oct. 27. “We wonder if the… Continue reading Another Billionaire Hedge Fund Manager Worries About Markets
Crain’s Chicago Business – Have real estate prices reached their peak? The hotel market has been on fire, too, but worries about a potential slowdown have depressed hotel stocks this year. Shares of companies in the Bloomberg REIT Hotel Index have fallen 19.5 percent this year, versus a 1.5 percent gain for the Standard &… Continue reading More On Sam Zell Calling A Peak In Real Estate
None Today
Newsmax – US Stock ETFs Posted $8.2 Billion Inflows Over Weekly Period: Lipper Investors piled $8.2 billion into stock exchange-traded funds over the week ended October 28, the third week of inflows for those funds and the most new money since mid-September, Lipper data showed on Thursday. The inflows followed a week dominated by central… Continue reading The Public Likes Stocks, They Just Hate Active Managers
Fact Set – Larger Cuts to S&P 500 Earnings Estimates Than Average for Q4 2015 To Date During the month of October, analysts lowered earnings estimates for companies in the S&P 500 for the fourth quarter. The Q4 bottom-up EPS estimate (which is an aggregation of the earnings estimates for all the companies in the… Continue reading An Earnings Update
<Click on graphic for larger image> The Wall Street Journal – U.S. Bond Market Takes Flight, an Upbeat Sign for Economy The bond market is booming again, a sign of investors’ faith in the resilience of the U.S. economy. U.S. bond sales by companies with good credit ratings hit $103 billion in October, a record… Continue reading Corporate Issuance
<Click on chart for larger image> The Financial Times – China lifts renminbi fix by most in a decade China’s currency weakened against the dollar on Monday despite the sharpest rise in the daily renminbi fix in a decade. The People’s Bank of China bolstered the midpoint of the range within which the currency is… Continue reading Fixing The Renminbi
<Click on chart for larger image> Bloomberg.com – China Should Dethrone Its GDP Target China’s leaders have been busy lately, finalizing the country’s new five-year plan. The details won’t be announced for a while, but most observers aren’t much interested in the fine points anyway. They’ll focus on the new target for growth in gross… Continue reading China’s GDP Target