Charts of the Week Topics Covered This Week Include: Stock/Bond Relationship The End Of The Bond Salesman (Masters Of The Universe)? Gold Hate A New High In Household Net Worth Real Estate In The U.S. Real Estate In The U.S. – 2 Credit Market Debt – 1 Credit Market Debt – 2 Flow of Funds… Continue reading Charts of the Week
CNBC – Robert Frank: Billionaires are hoarding piles of cash Billionaires are holding mountains of cash, offering the latest sign that the ultra-wealthy are nervous about putting more money into today’s markets. According to the new Billionaire Census from Wealth-X and UBS, the world’s billionaires are holding an average of $600 million in cash each—greater… Continue reading An Updated Look At The Myth Of Cash On The Sidelines
Bloomberg.com – Yellen Warns on Market Calm Before ’Considerable Time’ Up Federal Reserve Chair Janet Yellen says she wants investors to be prepared for the possibility that the Fed will raise interest rates sooner than they currently project. Her words are going unheeded. Volatility across stocks, bonds and currencies worldwide is close to record or… Continue reading Low Volatility Continues After Fed Meeting
The Financial Times – ECB’s Draghi takes up new weapon in war on deflation Runners have target times, golfers judge themselves by their swing, while Mario Draghi watches a technical measure of inflation expectations used by financial markets. Just one problem: it suggests the European Central Bank president is not achieving his objective – and… Continue reading Europe
MarketWatch.com – Opinion: Gold may rebound as extreme bearishness sets in What does contrarian analysis have to say about gold now? It was two weeks ago when I reported that sentiment analysis, at long last, was on the side of the bulls — at least for a tradeable rally. Yet, far from rallying, bullion today… Continue reading Gold Bearishness
The Financial Times – Treasury market cuts US inflation outlook The US bond market has slashed expectations of future inflation to their lowest level in nearly three years, highlighting the challenge facing the Federal Reserve as it moves towards ending easy money policy. Expectations for inflation over the next five years, as measured by comparing… Continue reading U.S. Inflation Outlook
<Click on chart for larger image> The New York Times – America Out of Whack There is something out of whack in America. Instead of promoting equality, public policy has left millions locked into lives of restricted opportunity while bestowing the benefits of growth on the very few. We know this and yet we let… Continue reading More On Household Net Worth
The Wall Street Journal – Treasury-Bill Yield Tips Into Negative Territory A scramble for safe, short-term debt left some investors on Tuesday paying for the privilege of lending to the U.S. government. The demand, which intensified following the Federal Reserve’s decision this month to curb a popular overnight-lending program, pushed up bond prices and drove… Continue reading Treasury Bill Yields Go Negative Once Again
Bloomberg.com – Moscow’s ‘Mr. Yuan’ Builds China Link as Putin Tilts East Vladimir Putin has a secret agent in his campaign to curb the impact of sanctions on Russia’s economy: Mr. Yuan. That’s what skeptical bankers started calling Igor Marich after he introduced yuan trading in Moscow in 2010, when Russia became the first country… Continue reading Putin’s Secret Weapon: “Mr. Yuan”
The Financial Times – Banks face fresh curbs on leveraged loans US banks that flout new regulatory guidance on leveraged lending risk facing higher capital penalties when the Federal Reserve undertakes its annual stress tests of the banking sector, according to people familiar with the process. The Fed has begun to warn banks defying its… Continue reading Leveraged Loans
Bloomberg Businessweek – We Don’t Actually Know If Student Debt Will End Your Home Buying Dreams Should you worry that student loan debt is undermining the health of America’s housing market? It depends on whom you ask. One report answers with a resounding yes. The study, released on Friday by John Burns Real Estate Consulting,… Continue reading More On Student Loans, Home Buying And Senior Student Loan Debt
MarketWatch.com – Opinion: Everyone is a genius in a Fed-induced stock rally I’ve noticed that many long-time bears are capitulating. If you look at market history, when bulls feel invincible and beaten-down bears give up, you have the makings of a market top. Need more evidence? Although the Dow has made all-time highs, the Russell… Continue reading Everyone Is A Genius When Stocks Rally