MoneyBeat (WSJ Blog) – Rising Bond Yields a Worry or Welcome? Should investors fear or cheer the recent rise in global bond yields? Much of the immediate focus is on how rising yields are a threat to growth. The euro zone may have just shrugged off recession, the U.K. is looking more positive, but growth… Continue reading Rising Rates
The Wall Street Journal – U.S. Jobless Claims Fall to Lowest Level Since October 2007 Trend Points to Continued Improvement in Labor Market The number of U.S. workers seeking first-time unemployment benefits fell to its lowest level since before the recession. Initial jobless claims, a proxy for layoffs, decreased by 15,000 to a seasonally adjusted… Continue reading Do Claims Lead Payrolls?
<Click on chart for larger image> MoneyBeat (WSJ Blog) – Correlations Plummet; Stock Pickers Rejoice This summer has offered an old-fashioned stock picker a chance to shine. Correlation among the 10 large-cap sectors in the S&P 500 – their tendency to move in unison regardless of their underlying fundamentals – fell to 69.9% last month,… Continue reading Stock Market Correlations
MoneyBeat (WSJ Blog) – Michael J. Casey: Empty Promises Put Central Banks Deeper In Market’s Thrall Imagine this response when a husband asks his wife whether he should buy her a ticket to a forthcoming football game: “As things look now, I think I’ll feel like coming when Sunday rolls around. Of course that might… Continue reading Central Banks’ Data Dependency
MoneyBeat (WSJ Blog) – End of the Bond-Bull Era, Take Three The three-decade bull run in bonds is over. Economists and investors said it in 2011, and again in 2012, each year proven wrong by record-breaking rallies in the Treasurys market. But they’re saying it again now, because 2013 is different. Why? Because the U.S.… Continue reading The End Of The Bond Bull Market
The Wall Street Journal – Euro Zone Returns to Growth, but Malaise Lingers The euro zone’s marathon recession has ended, spurred by solid economic performances in both Germany and France. But the modest recovery won’t go very far in fixing the bloc’s deeper problems and threatens to stoke a sense of complacency in European capitals.… Continue reading Europe
Bloomberg.com – Hatzius Finds Payrolls Poor as Economic Gauge The monthly U.S. nonfarm payrolls report may not be as powerful an economic indicator as suggested by how investors respond to it. A model created by Goldman Sachs Group Inc. economists Jan Hatzius and David Mericle found the employment data issued on the first Friday of… Continue reading We Are Too Focused On Payrolls & GDP
The Wall Street Journal – The Games the Fed Plays With Your Investments Federal Reserve Chairman Ben Bernanke is playing games with your investments. The Fed’s quantitative-easing program and near-zero interest rate policy is explicitly aimed at (among other things) raising asset prices to create a “wealth effect” that will bring about more confidence and… Continue reading Playing The FOMC’s Game
Bloomberg.com – Caroline Baum: Krugman Tries to Bury Friedman, Buries Himself It’s good that Milton Friedman is dead, because for the past week Paul Krugman has been trying to kill him off and discredit his monetarist theories. According to an Aug. 8 post on Krugman’s blog at the New York Times, Friedman — whom he… Continue reading Krugman vs. Friedman
None Today
Charts of the Week Topics Covered This Week Include: To Taper Or Not To Taper Citi Surprise Index On The Rise Earnings Season Update More On Earnings Is The Credit Crisis Officially Over? Updating Credit Spreads Does The Public Hate This Rally? An Updated Look At Mutual Fund Flows Gold ETFs & Bullion Holdings Betting… Continue reading Charts of the Week
Watch the latest video at video.foxbusiness.com Comment Jim Bianco was on FOX Business yesterday discussing the federal budget. To view the interview, click on the image above. To view any of our recent interviews click here. The Financial Times – Fiscal divisions on Capitol Hill prompt Fed tapering concerns The growing threat of a political… Continue reading Why Is The Federal Reserve Really Tapering? (Hint: Not Data Dependency)