<Click on chart for larger image> The Financial Times – Risk rally sees correlations crumble One feature of the ongoing “risk asset” rally has been the crumbling of previously sturdy correlations. The trend is most likely a function of calmer times as macroeconomic fears hold less sway, allowing investors to be more selective in their… Continue reading Correlations
<Click on chart for larger image> Real Time Economics (WSJ Blog) – Fed’s Bullard: Reduced Uncertainty Should Boost Economy Greater clarity over the future should boost the U.S. economy this year, a key Federal Reserve official said Wednesday. “In recent months we have seen a welcome reduction in global macroeconomic uncertainty,” Federal Reserve Bank of… Continue reading Uncertainty & The Economy
The Wall Street Journal – Banks Warned Not to Leave Libor Several banks planned to withdraw from the panel that sets a key benchmark interest rate but scrapped the idea after the U.K.’s financial regulator strongly warned them against doing so, according to people familiar with the matter. The Financial Services Authority recently sent letters… Continue reading Banks Want Out Of The LIBOR Setting Game
<Click on chart for larger image> CNBC – As US Gasoline Prices Soar, Hedge Fund Oil Bets Near Record U.S. motorists searching for someone to blame for the highest gasoline prices ever at this time of year have an easy target: hedge funds who have been quietly amassing winning bets on hundreds of millions of… Continue reading Hedge Funds Place Their Bets
Bloomberg.com – Caroline Baum: Real Risk-Takers Are the Folks at Federal Reserve Ever since the U.S. Federal Reserve lowered its benchmark rate almost to zero and embarked on a series of large-scale asset purchases, Chairman Ben Bernanke has been using his pulpit to explain how it all is supposed to work. In a nutshell: The… Continue reading How Does ZIRP Help The Economy?
The Wall Street Journal – Treasury Pick Focuses on Taxes, Spending Jacob Lew, the Treasury secretary nominee, told lawmakers Wednesday he would work to overhaul the tax code and reduce costs of programs such as Medicare, but largely avoided delving into specifics about how he would tackle such tasks. Republicans pressed Mr. Lew on a… Continue reading The Senate Finance Committee Skewers Jacob Lew
The Wall Street Journal – Euro-Zone Economy Plunges The euro-zone economy plunged last quarter at its fastest pace in nearly four years, as weakening global activity and deep recessions along the currency zone’s southern border gripped powerhouses such as Germany and France. The report on gross domestic product from the European Union’s statistics office highlights… Continue reading Europe’s GDP Dives
Charts of the Week Topics Covered This Week Include: Insiders Sell …Does It Matter? How The Fed Has Changed Stock Market Behavior Mutual Fund Inflows Continue To Slow Earnings Update Earnings Update – 2 Updated Look At Seasonal Charts Bond Market Bubble? Junk Beats Stocks Credit Market Risk The Japanese Stock Market Commodity ETF Update… Continue reading Charts of the Week
<Click on chart for larger image> <Click on chart for larger image> <Click on chart for larger image> <Click on chart for larger image> <Click on chart for larger image> <Click on chart for larger image> <Click on chart for larger image> <Click on chart for larger image> Bloomberg.com – Earnings Season Flashing ‘Warning Signals’… Continue reading Earnings Update
Zero Hedge (blog) – Sentiment More Bullish Than 99% Of All Prior Readings Movements in equity prices are driven by many factors, such as the economy, government policy, earnings, interest rates and valuation. But we think tactical moves (<3 months) are often better explained by sentiment, positioning and technicals. While macro, policy and valuations matter,… Continue reading Bullish On Stocks
<Click on chart for larger image> The Financial Times – The case for helicopter money I fail to see any moral force to the idea that fiat money should only promote private spending “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” This… Continue reading Helicopter Money