CNBC – ‘Almost Every Major Asset Class in the World Is Overpriced’: Analyst Federal Reserve policy has been credited often with pushing up stock prices, but one research firm believes the central bank has pushed all asset prices to extreme levels. “We think investors with a longer-term outlook should tread carefully in financial markets,” TrimTabs… Continue reading Everything Is Overpriced And Risky!
CNBC – New Math Makes It Easier to Lower the Unemployment Rate Conventional wisdom usually dies hard, but one long-held axiom relating to unemployment may be ready for the graveyard. For years, economists have accepted 150,000 as the benchmark number of new jobs needed every month to keep the jobless rate level. Anything above that… Continue reading Don’t Like The Numbers? …Use Different Math
MarketWatch – Fed retreat from bond buying expected by fourth quarter: poll Nearly two-thirds of U.S. economists think the Federal Reserve will start to retreat from its massive bond-buying strategy in the waning months of 2013, according to a poll. Some 35.1% of those who expect the Fed to reduce bond purchases believe the bank… Continue reading The Federal Reserve’s Exit Strategy, When And How Bad?
Alpha Now – Earnings Roundup: Second-quarter Earnings Guidance Among the Most Negative on Record Second-quarter earnings guidance looks extremely weak, with 93 of the 116 preannoucements negative. The healthcare sector has the most negative N/P ratio, and the consumer discretionary sector is also very negative. Of the 116 second-quarter earnings preannouncements given by S&P 500… Continue reading Record Negative Guidance
Data from the National Income and Product Accounts (1947-2009) and the National Economic Accounts (1929-47) are used to compute added value as a percentage of gross domestic product in the United States. Economix (NYT Blog) – Bruce Bartlett: ‘Financialization’ as a Cause of Economic Malaise According to a new article in the Journal of Economic… Continue reading Financialization
Bloomberg.com – Citigroup Facing $7 Billion Currency Hit on Dollar, Peabody Says Citigroup Inc. (C) could lose as much as $7 billion on currency swings if Charles Peabody is right, putting the analyst at odds with peers who say the stock will be the best performer among big U.S. banks in the year ahead. Peabody,… Continue reading Is Citi Facing Losses?
The New York Times – Japan’s Central Bank Holds Steady Amid Market Volatility The Bank of Japan held its policy steady on Tuesday, brushing off recent market volatility and standing by an ambitious target to stoke 2 percent inflation in two years, despite skepticism from within its own ranks over how quickly it can lift… Continue reading Japan Fails To Act
AFP – German bank employee naps on keyboard, transfers millions An obviously tired German bank employee fell asleep on his keyboard and accidentally transformed a minor transfer into a 222 million euro ($293 million) order, a court heard Monday. The Hessen labour court heard that the man was supposed to transfer just 62.40 euros from… Continue reading A Sleepy Fat Finger
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Comment Jim Bianco was on CNBC on Friday discussing the Federal Reserve and the payroll report. To view the interview, click on the image above. To view any of our recent interviews click here. The Wall Street Journal – Jon Hilsenrath: Fed on Track to Ease Up on Bond Buying Later This Year Federal Reserve… Continue reading Taper Talk
Barron’s – Liz Ann Sonders: Stocks Can Rise Along With Interest Rates History tells us that stocks can perform nicely even when the 10-year Treasury yield increases over a sustained period of time, writes Charles Schwab’s top investment strategist. If this is the beginning of a prolonged period of rising interest rates, what could that… Continue reading The Stock/Bond Relationship