The New York Times – Robert J. Shiller: The Housing Market Still Isn’t Rational Home prices have been climbing. They have risen 27 percent nationally since 2012, even more in places like San Francisco. But why worry? If you accept the efficient markets theory — and believe that real estate is an efficient market —… Continue reading Housing & The Efficient Markets Theory
Comment Yesterday we hosted a conference call titled “Why Is The Fed Tightening?”. If you missed it, see the links below: Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/072315.mp3|titles=Conference Call ] [pageview class=”PDFViewer” url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=263″] The Financial Times – Fed and BoE take pole positions in rate race Central banks are starting to resemble Formula One drivers of current vintage — two… Continue reading Why Is The Fed Tightening?
<Click on chart for larger image> Bloomberg.com – Yellen has bond market in hand as volatility heads to 2015 low Janet Yellen has the bond market right where she wants it as she prepares to raise interest rates for the first time since 2006. The Fed chair insists she expects to increase borrowing costs this… Continue reading Understanding Volatility
The Federal Reserve Board of Governors – Yellen’s Semiannual Monetary Policy Report to the Congress As I noted earlier, inflation continues to run below the Committee’s 2 percent objective, with the personal consumption expenditures (PCE) price index up only 1/4 percent over the 12 months ending in May and the core index, which excludes the… Continue reading The Market Does Not Share The Fed’s Expectation For Rising Inflation
<Click on chart for larger image> <Click on chart for larger image> FXStreet (Blog) – 1.5 Million Teens Don’t Think They Can Get a Job In This Economy In June of this year, the unemployment rate for workers 16 to 19 years old was 18.1%, or just over one-in-six. That’s up from the June 2007… Continue reading The Participation Rate By Age
<Click on chart for larger image> The Wall Street Journal – Oil Prices Enter Bear Market Amid Global Glut of Crude U.S. oil prices sank into a bear market Thursday as a global glut of crude shows little sign of abating. Prices had settled below the key $50-a-barrel mark for the first time since early… Continue reading Crude Oil Production
<Click on graphic for larger image> The Financial Times – ‘Jumbo’ bond deals help address liquidity concerns A multibillion-dollar corporate bond used to stop traffic on Wall Street, but “jumbo” and “mega” deals have become commonplace. In 2015, more companies have engaged in bond deals of at least $10bn — 12 in all — than… Continue reading Mega Corporate Deals
<Click on graphic for larger image> The Economist – Empire of the geeks Silicon Valley should be celebrated. But its insularity risks a backlash THE English have Silicon Fen and Silicon Roundabout, the Scots have Silicon Glen. Berlin boasts Silicon Allee, New York Silicon Alley. But the brain of the tech world is the ecosystem… Continue reading Silicon Valley More Important Than Wall Street?
The Wall Street Journal – At 78, Scientist Is Starting a Hedge Fund ‘Quant’ hedge fund would be launched later this year George Zweig discovered the quark at age 26, assisted with a covert military operation during the Vietnam War and helped design one of the first cochlear hearing implants. Now, at 78, he is… Continue reading Need An Idea For Retirement?
Bloomberg Business – Chicago Worth the Risk to Pimco, Wells Capital as Deficit Swells As Chicago wrestles with rising pension costs, cash-strapped schools and a swelling budget deficit, investors from Pacific Investment Management Co. to Wells Capital Management say they aren’t counting the Windy City out. Wells Capital is increasing its exposure to the junk-rated… Continue reading Is Chicago A Buy?
The Reformed Broker – European Stocks Have their Biggest Weekly Inflow Ever From Credit Strategy at BofA: Equities were the big story of the week however, with inflows increasing to a historical record of $6bn. ETFs contributed significantly to the inflow ($2.4bn). Flows suggest that Greece has done little to dent the European reflation story… Continue reading Inflows Into European Stocks