MoneyBeat (WSJ Blog) – Morning MoneyBeat: The Market That Cried Wolf The stock market is acting like the boy that cried wolf. Whenever the market slumps a bit, market watchers question whether stocks are due for a major tumble. Over the past few years, each warning sign has proven to be a false alarm. “Every… Continue reading The Looming Correction
Investor’s Business Daily – What Top Economists, Investors See Next Year Every summer, wealth management firm Cumberland Advisors’ chief executive, David Kotok, convenes a few dozen of the most successful economists and investors in the deep woods of Maine for fishing, conversation, and thoughtful discussion. A staple of “Camp Kotok” is an annual survey that… Continue reading The Consensus Opinion From Camp Kotok
The Wall Street Journal – Why It’s Worrying That U.S. Companies Are Getting Older Not only is the American population aging, businesses in the U.S. also are growing older. Older firms are increasingly controlling the largest market share in different sectors of the economy, according to a paper by the Brooking Institution’s Robert E. Litan… Continue reading Company Closings vs. Openings
The Wall Street Journal – Goldman Sachs Dumps Weaker Hedge-Fund Clients Bank Jettisons Some Less-Profitable Clients as New Capital Rules Take Their Toll Goldman Sachs Group Inc. is upending the way it does business with hedge funds, jettisoning less-profitable clients and increasing some fees on others as it adapts to new banking rules, people familiar… Continue reading Goldman Drops Some Muppets
<Click on chart for larger image> The Wall Street Journal – Hollywood Struggles With Its Galaxy Quest “Guardians of the Galaxy” is a very big movie. But it isn’t big enough to save the industry from a dismal summer at the box office. The comic-book flick from Walt Disney’s DIS +2.18% Marvel Studios took in… Continue reading The Economics Of Hollywood
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<Click on chart for larger image> MarketWatch – History says don’t count on a big correction anytime soon It’s been more than two years since the S&P 500 last suffered a 10% correction, a fact that has investors bracing for — or eagerly anticipating — a major pullback that’s often described as long overdue. One… Continue reading Looking For A Correction?
<Click on chart for larger image> Bloomberg.com – Half-Trillion-Dollar Exodus Magnifying U.S. Bill Shortage One of the biggest winners in the push to make money-market funds safer for investors is turning out to be none other than the U.S. government. Rules adopted by regulators last month will require money funds that invest in riskier assets… Continue reading Treasury Bills – Supply & Demand
The Wall Street Journal – WSJ’s Hilsenrath: Fed Can Be Patient on Rate-Hike Debate After Data A Commerce Department report showed the Fed’s favored measure of inflation—the personal consumption expenditure price index—was up 1.6% in June, its 26th straight month below the Fed’s 2% inflation goal, though higher than readings at 1% and below last… Continue reading Hilsenrath’s Take On The Jobs Report
<Click on chart for larger image> MoneyBeat (WSJ Blog) – Dog Days of Summer for Stock Trading The downturn in stock trading volumes showed no sign of slowing in July. An average of 5.7 billion shares a day have traded hands in July, the lowest figure for July since 2006, according to data from Credit… Continue reading Low Trading Volume Continues
The Wall Street Journal – Junk-Debt Liquidity Concerns Bring Sales A shakeout in the junk-bond market is drawing only cautious interest from bargain-hunters, underscoring investor fears that many once-hot securities could prove hard to sell in an increasingly difficult trading environment. U.S. funds investing in debt rated below investment grade lost an average 1.33% last… Continue reading Junk Bond Liquidity
The Wall Street Journal – Europe’s Problem Is Equity, Not Debt What is the euro zone’s real problem? Too much debt? Or too little? On the one hand, economists argue the recovery is being held back because debt burdens remain far too high. Total public- and private-sector debts are equal to more than 400% of… Continue reading Europe’s Debt Dilemma