The Wall Street Journal – As Commodities Fall, Some Investors See Reasons to Buy About half the world’s oil isn’t economical to produce when prices are below $50 a barrel, Nomura Securities said in a recent note. “We’re at price levels where you’re seeing a lack of interest in reinvesting” by producers, said Jonathan Berland,… Continue reading Commodity Prices
Yahoo Finance – Kass’s Korner: Fed to Savers: Drop Dead Faced with the prospects of generating little income on savings, it is not surprising that many are reluctant to buy longer dated assets, like U.S. stocks, for fear of losses that would even further risk their capital bases. Another potential issue is that, eventually, low… Continue reading Savers And The Fed Policy
CNBC – Everyone is scared: Nobel Prize winner Shiller The human race has deep underlying fears about technology and the lives their children will lead and this can be seen – in all places — in the negative yields in bond markets, Nobel Prize-winning economist Robert Shiller told CNBC. “I think fears have been growing… Continue reading Robert Shiller Speaks
The New York Times – The Shrinking American Middle Classrinking American Middle Class The middle class, if defined as households making between $35,000 and $100,000 a year, shrank in the final decades of the 20th century. For a welcome reason, though: More Americans moved up into what might be considered the upper middle class or… Continue reading The Dwindling Middle Class
Bloomberg Business – Subprime Bonds Are Back With Different Name Seven Years After U.S. Crisis The business of bundling riskier U.S. mortgages into bonds without government backing is gearing up for a comeback. Just don’t call it subprime. Hedge fund Seer Capital Management, money manager Angel Oak Capital and Sydney-based bank Macquarie Group Ltd. are… Continue reading Subprime Is Now Called “Nonprime”
Comment All of the earnings story below are from the last 24 hours. Note the common theme (highlighted in red) The Wall Street Journal – W.W. Grainger Cuts Outlook On Canada, Currency Weakness Company Cuts Per Share Earnings and Sales Outlooks W.W. Grainger Inc. cut its outlook for the year on Monday, citing weakening Canadian… Continue reading A Terrible Earnings Day
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Bloomberg.com – Hedge Funds Bet Oil Will Fall Further Hedge funds boosted bearish wagers on oil to a four-year high as U.S. supplies grew the most since 2001. Money managers increased short positions in West Texas Intermediate crude to the highest level since September 2010 in the week ended Jan. 20, U.S. Commodity Futures Trading… Continue reading Interpreting The COT Data
Real Time Economics (WSJ Blog) – Jon Hilsenrath: Bad Weather Could Complicate an Already Tough Fed Decision in March Dire warnings about the snowstorm hitting the Northeast of the U.S. appear to have been a little overstated, as its toll so far hasn’t been as bad as feared. Still, it is worth considering for a… Continue reading Does the Fed Have Six Weeks To Decide About QE?
Cornerstone Macro – Oil Back To $88 … ? So I did the math on how much EPS would have to grow to get the P/E back to a normal level and avoid another sharp price decline. The analysis below shows a very simple analysis where I regress oil prices with Energy sector EPS –… Continue reading Refusal To Recognize Falling Crude Oil Prices
Bloomberg – Goldman Sachs’s Cohn Says Oil Prices May Hit $30 in Extended Slump Oil prices will probably continue to decline and could reach as low as $30 a barrel, according to Gary Cohn, president of Goldman Sachs Group Inc. “We’re probably in the lower, longer view,” Cohn, a former oil trader, said Monday in… Continue reading Goldman Is Very Bearish On Crude