<Click on chart for larger image> Reuters.com – Shiller’s math says the market looks expensive Here is a worrisome thought for all the analytical investors out there: What if all this time, you have been looking at the wrong numbers? Consider this: When you are mulling over whether to buy a stock, you are likely… Continue reading Is The Market Expensive?
The Financial Times – Moody’s considers downgrading top US banks Moody’s has warned that it could cut the credit ratings of the six biggest US banks, saying the federal government may be less likely to bail them out if they got into trouble in the future. Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo… Continue reading Downgrading The Banks?
MarketWatch – Brett Arrends: How the Fed could cause another 1987 crash Rising interest rates and the gathering storm Stock market investors continue to ignore one of the biggest, fastest jumps in long-term interest rates on record. Yes, the Dow slipped below 15,000 this week, but it remains near its long-term peak — despite the… Continue reading Is A Market Crash Coming?
<Click on chart for larger image> The Economist – India’s economy: How India got its funk India’s economy is in its tightest spot since 1991. Now, as then, the answer is to be bold IN MAY America’s Federal Reserve hinted that it would soon start to reduce its vast purchases of Treasury bonds. As global… Continue reading India
The Wall Street Journal – Jon Hilsenrath: Fed Stays the Course on Bond Buying Federal Reserve officials reaffirmed their plan to try winding down an easy-money program that has charged up global markets but left investors on tenterhooks about when or how aggressively they would move. Minutes of the Fed’s July 30-31 policy meeting, released… Continue reading The FOMC Minutes Offer Little New Information
Reuters – China, Japan lead record outflow from Treasuries in June China and Japan led an exodus from U.S. Treasuries in June after the first signals the U.S. central bank was preparing to wind back its stimulus, with data showing they accounted for almost all of a record $40.8 billion of net foreign selling of… Continue reading A Closer Look At Chinese & Japanese Purchases (Yes, Purchases!) Of Treasuries
Zero Hedge (Blog) – Someone Is Lying Existing home sales beat expectations by the most since February 2010 surging 6.5% MoM to its highest SAAR level since March 2007. Sound right? Of course, this is defended by the ever-honest NAR by a sudden panic surge of buyers as rates rose. However, we just wonder how… Continue reading Which Housing Stats Are Correct?
<Click on chart for larger image> The Wall Street Journal – Investors Yank Money From Bond Funds Investors have yanked $30.3 billion from U.S.-listed bond mutual funds and exchange-traded funds this month, marking the third-largest monthly outflow in records going back to 1984, according to estimates by TrimTabs Investment Research. The redemptions, which are through… Continue reading Bond Fund Outflows
<Click on chart for larger image> Bloomberg.com – Bond Trading Hampered as Buyers Retreat to Crowded Exits The lowest volumes for U.S. corporate-bond trading since 2008 are underscoring the potential for market disruptions as regulations prompt dealers to retreat. August trading volumes have plummeted to a daily average of $14.1 billion, down 9 percent from… Continue reading Corporate Bond Volume
<Click on chart for larger image> MoneyBeat (WSJ Blog) – Hedge Funds Severely Underperforming This Year It’s been a great year for the stock market. It’s been a tough year for a hedge-fund manager. A typical hedge fund has risen 4%, on average, this year through Aug. 9, according to an analysis conducted by Goldman… Continue reading Hedge Fund Underperformance Continues
Bloomberg.com – Joshua Zumbrun: Yellen’s Ties From London to Shanghai Bypass White House Janet Yellen as Federal Reserve vice chairman has spent time building relationships across the Fed’s regional banks and with central bankers from Shanghai to London to Mexico City — everywhere except the corridors of power in Washington. Yellen’s calendars, obtained under the… Continue reading Yellen vs. Summers