Charts of the Week Topics Covered This Week Include: Earnings Expectations Company Guidance Earnings And Revenue Beat Rates Why Money Managers Own Stocks Right Now The Fed And The Markets Continue To Disagree Speculators Still Love Crude Oil Home Prices China Eases Again Comparing Government Debt To GDP Negative 2-Year Yields Japan Overtakes China As… Continue reading Charts of the Week
Comment As of last night, 102 of the S&P 500 companies reported earnings. 74.5% beat estimates. As the chart and table below show, this is slightly above average, but noting earth shattering. <Click on chart for larger image> The table below shows the historical beat rate after 100 companies have reported (% positive). Note that… Continue reading Earnings And Revenues Beat Rates
The Wall Street Journal – Jon Hilsenrath: Fed’s Rate Decisions Hang on Dollar, Growth Concerns Central-bank officials remain optimistic but headwinds threaten GDP, inflation projections The strong U.S. dollar and an unsteady global economy are emerging as primary concerns for Federal Reserve officials as they prepare for a policy meeting next week to consider the… Continue reading Timing The Rate Rise
Bloomberg View – Guy Trading at Home Caused the Flash Crash Hey look, they caught the guy who caused the flash crash of 2010! His name is Navinder Singh Sarao, and he lives in London and in 2009 he asked someone to help him build a spoofing robot. Sarao was trading E-mini S&P 500 futures… Continue reading The Flash Crash Mastermind
<Click on image for larger image> The Wall Street Journal – Greg Ip: Is Government Debt Too Low? Government debt has skyrocketed since the financial crisis, and now tops 100% of GDP on average in rich countries. Is that too high? Oddly, it may not be high enough. That’s the provocative suggestion Brad DeLong, from… Continue reading Comparing Government Debt To GDP
Wells Fargo – James Kochan: Introducing the Yellen put The Yellen put might be as effective as the Greenspan put—that is, not very effective The Yellen put, therefore, involves bond prices rather than the stock market. The FOMC, under her leadership, does not want bond yields to rise sharply because officials feel that would weaken… Continue reading The Yellen Put
The Financial Times – Martin Wolf: Mythology that blocks progress in Greece It will not end well if those involved cling to false beliefs Default entails a Greek exit. A sixth myth is that if Greece defaults, it would have to create a new currency and so leave the eurozone. It is possible that if… Continue reading More On Greece
The Wall Street Journal – Bonds Aren’t What They Used to Be for Convertibles Convertible bonds look like more of an outright bet on equities than in the past The lure of convertible bonds has always been their ability to offer a halfway house: the chance to enjoy share-price gains while having the protection of… Continue reading Convertible Bonds
Investors.com – Monetary Stimulus Creates Only Pseudo Wealth Federal Reserve Bank Chairwoman Janet Yellen was successful in having the word “patient” removed from the March Federal Open Market Statement. But in her press conference she reassured financial markets by noting that “just because we removed the word patient from the statement doesn’t mean we are… Continue reading Wealth Creation And Monetary Stimulus
The Wall Street Journal – Debt Piles Up in Asia, Threatening Growth Today, super-loose monetary policies in the U.S., Europe and Japan have caused cash to flood into Asia. Yield-hungry investors have driven down interest rates, allowing governments, companies and individuals to borrow more than ever before, at the lowest rates in history. The borrowing… Continue reading How Debt Threatens Growth In Asia
Comment Yesterday Jim Bianco was on CNBC talking about the stock market. To view the interview, click on the image above. To view any of our recent interviews, click here. Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/newsclips/2015/04/sd0819c2.mp3|titles=Bloom ] Additionally, Jim was also on Bloomberg Radio talking about interest rates and stocks. To listen, click on the audio player above. For… Continue reading Talking Markets