<Click on chart for larger image> MarketWatch.com – How Wall Street is explaining high stock valuations P/E ratios: A lousy short-term predictor High stock valuations don’t necessarily mean a crash is imminent. In fact, elevated price-to-earnings ratios are a lousy predictor of short-term returns, according to strategists and portfolio managers. “P/E ratios have little explanatory… Continue reading Stock Valuations
<Click on graphic for larger image> CNBC – Chinese online gaming company wins Buffett lunch for $2.3M An online gaming company based in Beijing was the highest bidder in an online auction of a steak lunch with Warren Buffett. Da Lian Zeus Entertainment Company will donate $2,345,678 to share a meal with the billionaire investor. … Continue reading Has Buffett Peaked? – Year 3
The Wall Street Journal – Yellen: Fed Was Advised Against Fully Complying With Subpoena on Leak Probe Federal Reserve Chairwoman Janet Yellen said the central bank didn’t provide most of the information requested by members of Congress about an internal investigation because of an ongoing criminal probe into the matter. In a letter to Rep.… Continue reading Yellen Tells Congress To Take A Hike
The Telegraph (UK) – Jeremy Warner: How central banks have sown the seeds for the next financial crisis The notion that governments have somehow got on top of the forces of financial instability is for the birds After a six-year bull market, the typical stock in America’s S&P 500 shares index is valued on a… Continue reading More On Financial Stability
The Wall Street Journal – New Housing Headwind Looms as Fewer Renters Can Afford to Own Last decade’s housing crisis could give way to a new one in which many families lack the incomes or savings needed to buy homes, creating a surge of renters and a shortage of affordable housing. The latest problem looks… Continue reading Renting vs. Owning
The Financial Times – Mohamed El-Erian: Tug-of-war ahead as central banks seek control The recent volatility in the sovereign bond markets of Europe and the US has rightly caught many people’s attention. Its primary drivers, German government bonds, have displaced the traditional global price setting role played by US Treasuries. It involves bonds that serve… Continue reading El-Erian On Volatility
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The Wall Street Journal – U.S. Adds 280,000 Jobs in May; Jobless Rate Ticks Up to 5.5% U.S. employers ramped up hiring last month and wage gains accelerated, suggesting the labor market is picking up momentum after slowing in the early months of 2015. Nonfarm payrolls rose a seasonally adjusted 280,000 in May, the Labor… Continue reading Employment In Pictures
Comment Jim Bianco was on Bloomberg TV yesterday discussing the IMF’s plea for the Fed to hold off on a rate hike. To view the interview, click on the image above. To view any of our recent interviews, click here. The market is still not pricing in a hike for 2015, so the IMF is… Continue reading The IMF Begs The Fed To Hold Off On A 2015 Rate Hike
China Times – Bernanke: Beijing’s financial handling should avert crisis Bernanke also expressed optimism about China’s economy. He said that while the country is facing massive amounts of bad loans in the banking system, as well as problems in its shadow banking, real estate sectors and the stock market, the major issue it needs to… Continue reading Bernanke Likes China’s Economy
Bloomberg.com – You Call This a Bond Rout? Wait Until the Real Selling Starts If you think the latest hiccup in world bond markets looks bad, wait until investors actually start selling their holdings. Yes, German and U.S. bond yields have soared to their highest levels this year. And, yes, more than $626 billion of… Continue reading Fed Hikes And Mutual Fund Flows