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Charts of the Week

Conference Call Presentation/Charts of the Week

July 29, 2014

Conference Call Presentation/Charts of the Week Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/073014.mp3|titles=Conference Call ] Topics Covered This Week Include: Earnings Season Earnings Growth Rate Revenue Season Guidance Index Operating Income Valuation Small Caps Struggle Low Volatility Credit And Stocks Sentiment Is Bearish GDP Tracking This Is How The Economy Rebounds From Bad Winters Potential GDP Job Growth Initial Claims… Continue reading Conference Call Presentation/Charts of the Week

Newsclips

New High In Bond Bearishness

July 29, 2014

<Click on chart for larger image> Seeking Alpha – Bond Bears: Admit You Were Wrong One of the most common excuses made by forecasters is, “I wasn’t wrong, I was just off with the timing.” But that fails to acknowledge that timing is an integral part of any forecast. Imagine a weather reporter predicting rain… Continue reading New High In Bond Bearishness

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Newsclips

Small Cap Underperformance

July 29, 2014

The Globe and Mail – Small caps lose lustre as investors embrace stability Small-cap investing has been in favour for the better part of the last 15 years. Now, there are some early signs that cycle is coming to an end, giving way to a new phase of large-cap dominance. This year has seen a… Continue reading Small Cap Underperformance

Newsclips

European Rates Plummet

July 29, 2014

<Click on chart for larger image> The Financial Times – Spanish yields fall to two-century low Spain’s borrowing costs have fallen to levels not seen since the country’s empire stretched across the Americas. The yield on Spain’s benchmark 10-year government bond fell below 2.5 per cent on Monday for the first time in more than… Continue reading European Rates Plummet

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Newsclips

An Updated Look At The Atlanta Fed’s GDPNow Forecast

July 29, 2014

Atlanta Fed – GDPNow logo The growth rate of real gross domestic product (GDP) is a key indicator of economic activity, but the official estimate is released with a delay. Our new GDPNow forecasting model provides a “nowcast” of the official estimate prior to its release. Recent forecasts for the GDPNow model are available here.… Continue reading An Updated Look At The Atlanta Fed’s GDPNow Forecast

Newsclips

More On Retail Leaving Junk Bonds

July 29, 2014

The Financial Times – Retail investors dump high-yield bond funds The flight of retail investors out of “junk” bond funds is accelerating amid fears that the asset class’s bull run may have come to an end. Withdrawals from high-yield bond funds reached $4.8bn this week, according to a closely watched survey from Bank of America… Continue reading More On Retail Leaving Junk Bonds

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Newsclips

An Argument For Reverse Repos

July 29, 2014

The Grumpy Economist – John Cochrane: Bair and Reserves for All Ok, a crisis is defined exactly as a time in which investors want to take money out of private short-term debt and hold money — now reserves. The Fed facility allows them to do that. But, without the Fed facility they can do it… Continue reading An Argument For Reverse Repos

Newsclips

More On Earnings Season

July 29, 2014

Factset Insight – Highest Ex-Financial Earnings Growth Rate (8.5%) since Q3 2011 During the past week, the blended earnings growth rate for the S&P 500 increased to 6.7% from 5.4% due to a high number of companies reporting earnings above EPS estimates. Six of the ten sectors recorded an improvement in earnings growth over the… Continue reading More On Earnings Season

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Newsclips

Crash Talk

July 29, 2014

MarketWatch – Stock trader who called three crashes sees 20% collapse Veteran investor expects bear market within 12 months Mark Cook, a veteran investor included in Jack Schwager’s best-selling book, “Stock Market Wizards,” and the winner of the 1992 U.S. Investing Championship with a 563% return, believes the U.S. market is in trouble. The primary… Continue reading Crash Talk

Newsclips

Fed In Denial?

July 29, 2014

CNBC – Simon Johnson: The Fed in denial Unfortunately, as currently constructed, these resolution powers are unlikely to work. They do not apply across borders, there is not enough loss-absorbing capital in large complex financial institutions, and the funding structure of big bank holding companies remains precarious. Senior Fed officials emphasize that big banks fund… Continue reading Fed In Denial?

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Newsclips

The Mortgage Market

July 29, 2014

Real Time Economics – Is the Private Mortgage-Bond Market Dead or Dormant? It’s been nearly seven years since the market for so-called private-label mortgage bonds, or those that aren’t backed by government-related entities, dried up. For years, government policy makers and financiers have speculated over when those markets might meaningfully revive. But given the weak… Continue reading The Mortgage Market

Newsclips

FOMC Infighting

July 29, 2014

CNBC – Fed up? Janet Yellen facing challenges from within Not quite six months into her term, Federal Reserve Chair Janet Yellen already faces a stern test: unrest from within. Dallas Fed President Richard Fisher’s op-ed column in Monday’s Wall Street Journal represents an unusual—though not entirely unprecedented—public calling-out of the central bank’s policies and,… Continue reading FOMC Infighting