<Click on chart for larger image> The Financial Times – Clash of the Cape crusaders Robert Shiller’s warnings about the internet stock bubble of the late 1990s, followed after a few years by a controversial – and accurate – prediction on the US housing market, earned him the respect of Wall Street and a place… Continue reading Market Valuation
The Financial Times – Mohamed El-Erian: What the Fed will do with its taper and why This week’s heavy schedule of data releases will likely have a big, if not determining, say in “when” and “how” the US Federal Reserve tapers its quantitative easing programme – that is, start moderating its exceptional support for markets… Continue reading Timing The Taper
Bloomberg.com – Misconceptions About Fed’s Bond Buying To combat the recession that began in 2007, the Federal Reserve and some other central banks have been buying large amounts of long-term bonds. The novelty of this quantitative easing makes the policy especially prone to popular misconceptions. Misconception No. 1: QE bond purchases are comparable to stimulus… Continue reading A Poor Defense Of QE
MoneyBeat (WSJ Blog) – ETFs Poised for Biggest Monthly Outflows Since 2010 August is poised to see the biggest cash withdrawal from all U.S. exchange-traded funds in more than three years, according to preliminary data from BlackRock Inc.BLK -0.08%, the largest U.S. ETF provider. Some $16.1 billion flowed out of U.S. ETFs in August, through… Continue reading ETF Flows
<Click on chart for larger image> The Wall Street Journal – Long-Term Jobless Left Out of the Recovery For those left behind by the long, slow economic recovery, time is running out. More than four years after the recession officially ended, 11.5 million Americans are unemployed, many of them for years. Millions more have abandoned… Continue reading The Jobs Market
Reuters.com – Larry Summers and the politicization of the Fed Klein’s thesis, when it comes to economic appointments, is that “the bar for each appointment is that the economic team already likes the candidate and knows he or she is good at the job and will work well with the other members of the team”.… Continue reading Summers vs. Yellen
The Financial Times – Italy introduces tax on high-speed trade and equity derivatives Italy will on Monday become the first country to introduce a tax on high-frequency trading in a move that has become a test case for potential further crackdowns on the controversial practice. The country will introduce levies against high-speed trading and equity… Continue reading Italy Takes A Stand Against HFT
The Wall Street Journal – Godfather of Charts Turns Bearish; Targets Dow 12000 He said his bearishness is as much “a prudent investment call” as it is a technical one. Given all the uncertainty surrounding the emerging markets, Middle East tensions, monetary policy and seasonality–September has historically been the weakest month of the year–investors who… Continue reading Dow 12,000?
None Today
Comment Yesterday we hosted a conference call titled “What Will The Federal Reserve Do Next Month?” The handout and audio are below. [pageview class=”PDFViewer” url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=146″] Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/503842-712736.mp3|titles=Conference Call ]
Zero Hedge – Gundlach’s Year End Bond Forecast, Revised It would appear that the new normal’s Bond gurus are struggling with the weight of the ‘Taper’-ing, deleveraging, ‘special-repo’-ing, government-repress-ing, EM-crisis-ing world of extreme fast money flows that the Fed has thrust upon us. Just 3 short months ago, Jeff Gundlach said that he “expects the… Continue reading Gundlach Speaks
<Click on chart for larger image> CNBC – If August was bad for stocks, September may be worse Even though it may be quiet in markets Friday, anxiety has been building ahead of September, historically the worst month for stocks. This September will be especially difficult to navigate with the monthly employment report next week… Continue reading Stock Market Seasonals