The Financial Times – Lex: Great rotation: reasons not to believe Slogan implies a tight connection between demand for bonds and equities Bull markets and baloney form a natural pair. Rising prices have a built-in constituency of sell-siders and other salespeople who need explanations for why today’s rally will be around tomorrow. So one bit… Continue reading Stock/Bond Relationship
The Financial Times – Jamil Baz: Brace for a stock market accident Profits and leverage are locked in a deadly embrace There are two reasons why this consensus is misguided. First, because it uses dubious metrics. It is wiser to use a long-dated real bond yield because equity is a long-dated asset. And forward earnings… Continue reading An Earnings Update
Bloomberg.com – European Stocks Retreat Amid Turmoil in Spain, Italy European stocks tumbled the most in more than three months as Spanish and Italian banks retreated with the nations’ government bonds amid signs of returning political uncertainty in the region’s weakest economies. Banco Santander SA (SAN), Spain’s largest bank, sank the most in six months… Continue reading European Stock Charts
Bloomberg Businessweek – Dallas Fed President Fisher Unsure Whether QE Aiding Jobs Richard Fisher, president of the Federal Reserve Bank of Dallas, said the central bank’s asset purchase program, known as quantitative easing, may not be helping the labor market. “The efficacy is questionable,” Fisher said in an interview with Kathleen Hays on Bloomberg Radio’s… Continue reading Is QE Creating Jobs?
MarketWatch – Sell bonds, buy peace of mind If U.S. bonds are likely to tank over the next few months, you might think that international bonds would be a safer bet. Chart 3 ( please click here for chart ) argues otherwise, since the KST, a long-term smoothed momentum indicator, has been declining since 2011… Continue reading This Just In … Someone Is Predicting Lower Bond Prices … Shocking!!
The Associated Press – Argentina freezes prices to halt inflation ARGENTINA has announced a two-month price freeze on supermarket products in an effort to stop spiraling inflation. The price freeze applies to every product in all of the country’s largest supermarkets – a group including Walmart, Carrefour, Coto, Jumbo, Disco and other large chains. The… Continue reading Argentina
The Wall Street Journal – Money Funds Beset by Excess CashLook Out Below: Money Funds Are Chasing Riskier Assets Money-market funds have a high-quality problem: investors are entrusting them with too much cash. The flood of money is prompting the funds, which buy short-term, top-rated debt, to seek higher returns in investments that until recently… Continue reading Risky Money Market Funds?
Comment The first story below from The Wall Street Journal argues the stock market is responding to better economic data. The second story below from The Financial Times uses essentially the same graphic and argues that the stock market is rallying despite conflicting data. So which is it? As the following Bloomberg TV video from… Continue reading Is The Economy Helping Stocks? It Depends On What Paper You Read
Barron’s – Cover Story: New Highs in Sight At 14,009, the Dow is within a hair’s breadth of its all-time high, set in 2007. Why the market could hit 15,000 this year—or more. Energy stocks and financials could lead the way. The party is far from over. The early-year rally that on Friday took the… Continue reading Is This What A Contrarian High Looks Like?
Comment Jim Bianco was on CNBC on Friday discussing stock market inflows. To view the interview click on the image above. To view any of our recent interviews click here. Zero Hedge – Santelli & Bianco Crush Conventional Wisdom With Dow at 14,000 and rates rising, those that need to take commissions and get their… Continue reading The Myth Of The Great Rotation
CNBC – And We’re Back! Dow 14,000 Fuels a New Wealth Boom The next American wealth boom has officially begun. It may not feel like it for many Americans. But with the Dow breaching 14,000, shareholders and investors have recovered the more than $8 trillion in wealth lost during the recession and attained levels of… Continue reading The Wealth Effect