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Stocks Continue Marching Higher On Low Volume
August 26, 2014
<Click on chart for larger image> CNN Money – S&P 500 tops 2,000 for first time ever So much for the stock market rally coming to a screeching halt. The S&P 500 surpassed the 2,000 level for the first time ever on Monday morning. Despite a fair amount of ups and downs over the past… Continue reading Stocks Continue Marching Higher On Low Volume
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Stocks Up 230% From March 2009 Low
August 26, 2014
<Click on chart for larger image The Financial Times – S&P 500 passes 2,000 for the first time The S&P 500, the world’s largest equity market and a bellwether of the US economy, rose above the 2,000 threshold for the first time on Monday. The extension of the equity bull run that began more than… Continue reading Stocks Up 230% From March 2009 Low
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The S&P 500’s Cheap P/E Ratio And Bubbles
August 26, 2014
<Click on chart for larger image> Bloomberg – Surging U.S. Stocks Echo Dot-Com Rally With Cheaper P/E Every day, the American bull market looks more and more like the dot-com bubble of the late 1990s. Except when it comes to valuations. The Standard & Poor’s 500 Index (SPX) briefly jumped above 2,000 for the first… Continue reading The S&P 500’s Cheap P/E Ratio And Bubbles
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Rising Rates And The Stock Market
August 26, 2014
The Wall Street Journal – How Would the Fed Raise Rates? With banks chock full of excess reserves, the federal-funds rate may prove useless as a tool to drain liquidity. Central bankers at the Jackson Hole symposium on Friday heard a lot of talk from Federal Reserve Chair Janet Yellen about the labor market, over… Continue reading Rising Rates And The Stock Market
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More Bond Market Hate
August 26, 2014
Bloomberg.com – Why Can’t Wall Street Get Any Respect From Bond Market? When it comes to predicting where U.S. borrowing costs are headed, the bond market isn’t taking Wall Street’s advice seriously. After giving up on calls last month that Treasury yields will rise in 2014, forecasters are sticking to estimates those on the 10-year… Continue reading More Bond Market Hate
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Junk Bonds
August 26, 2014
Bloomberg.com – Junk Bonds Overtaken by High Grade as 2014’s Favored Bet Bonds sold by investment-grade companies worldwide are on pace to deliver something they’ve managed only twice in the past 17 years: annual returns of at least 10 percent. The debt has become a sweet spot for investors who see little threat of rising… Continue reading Junk Bonds
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Bullard: The Fed’s Policy Statement Needs To Be Modified
August 26, 2014
The Financial Times – James Bullard says Fed will need to alter guidance The US Federal Reserve will soon need to modify its policy statement as the economy improves and asset purchases end, said St Louis Fed president James Bullard. Mr Bullard said in an interview with the Financial Times that the Fed would have… Continue reading Bullard: The Fed’s Policy Statement Needs To Be Modified
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Student Loan Debt
August 26, 2014
Bloomberg – Student Debt Threatens the Safety Net for Elderly Americans Until his Social Security check arrived almost $300 lighter last June, Eric Merklein, 67, didn’t know he had outstanding student debt. He’d taken out a loan about 40 years ago to attend Southern Illinois University and believed it had been repaid by his grandmother… Continue reading Student Loan Debt
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Merger Mania
August 26, 2014
<Click on chart for larger image> CNN – Heating up: Burger King is latest in M&A frenzy The summer might be winding down, but the mergers and acquisitions market is still heating up, and investors are loving it. The latest corporate wheeling and dealing is over a possible alliance between Burger King and Canada-based Tim… Continue reading Merger Mania
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The Real Estate Bubble In China
August 26, 2014
The Financial Times – Property bubble is ‘major risk to China’ On desolate salt flats on the far outskirts of China’s sixth-largest city, dozens of enormous half-built skyscrapers stand as a monument to the excess and optimism of the Chinese real estate market. As physical manifestations of China’s property bubble go, few examples can beat… Continue reading The Real Estate Bubble In China
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Bank Asset Sales In Europe
August 26, 2014
Bloomberg – Europe Bank Cleanup Driving $1.72 Trillion of Asset Sales Europe’s largest banks are finally putting hundreds of billions of dollars of unwanted assets up for sale amid mounting competition among buyers and regulatory pressure. A wave of deals could be a boon to the region’s economy if the banks free up capital to… Continue reading Bank Asset Sales In Europe