The Economist – Buttonwood: War games Another battle to achieve currency depreciation The starting-point for this particular skirmish was the election of Shinzo Abe as prime minister of Japan in December, and his promise to reorient economic policy. In particular Mr Abe wants the Bank of Japan to double its inflation target to 2% and… Continue reading Japan Depreciates
Business Insider – Dividend Stocks Are Better In Both Bull And Bear Markets Dividend stocks are the lease sexy stocks in the market. Companies that pay dividends generally have limited growth prospects, which is why they pay out that cash to shareholders. Growth stocks on the other hand tend to offer more robust return opportunities… Continue reading Dividend Investing
<Click on chart for larger image> Reuters – U.S.-based stock funds reap record inflow of $14.82 bln Investors in U.S.-based mutual funds poured $14.82 billion into stock funds in the week ended Jan. 9, a record according to weekly data that extends back to the start of 2007, the Investment Company Institute said on Wednesday.… Continue reading The ICI Confirms Record Weekly Stock Inflows
<Click on chart for larger image> The Financial Times – Foreign buying of US Treasuries rebounds Foreign demand for US bonds and stocks rebounded sharply in November, with private investors prominent buyers of US Treasuries, according to the latest official data released on Wednesday. Private investors bought a net $29.7bn of Treasury notes and bonds… Continue reading Foreign Purchases Of U.S. Treasuries
Bloomberg.com – Fed Concerned About Overheated Markets Amid Record Bond-Buying Federal Reserve officials are voicing increased concern that record-low interest rates are overheating markets for assets from farmland to junk bonds, which could heighten risks when they reverse their unprecedented bond purchases…Now, as central bankers boost their stimulus with additional bond purchases, policy makers from… Continue reading Concerns Regarding An Exit Strategy
The Wall Street Journal – Paul Moreno: Gold, Greenbacks and Inflation: A History and a Warning The Federal Reserve, which celebrates its 100th anniversary this year, is tasked by Congress with managing the money supply so as to preserve price stability while maximizing employment. But with the central bank having increased the money supply by… Continue reading The Federal Reserve & Inflation
CNBC – The Most ‘Dangerous’ Asset to Own Is… Adding to a rising chorus of analysts warning of a potential bond market crash in 2013, is David Roche, president of Independent Strategy, who says safe-haven government debt is the most “dangerous” asset to own, referring to German Bunds, U.K. Gilts and U.S. Treasurys. “This year… Continue reading Another Name To Add To The List Of Bond Haters
<Click on chart for larger image> Business Insider – A Major New Oil Pipeline Is Going To Raise Half The Country’s Gas Prices Last week, a major new oil pipeline was completed to connect processing facilities in Oklahoma with port refineries near Galveston, Texas, according to Platts. Drillers are celebrating. But many Americans will soon… Continue reading New Pipeline Means Higher Gas Prices
The Wall Street Journal – Mortgage Rules Aid Homeowners U.S. banks will have to do more to help struggling mortgage borrowers keep their homes under final rules to be released Thursday by a U.S. regulator. Mortgage-loan servicers, which collect borrowers’ loan payments, will have to evaluate troubled borrowers for all loan-assistance options permitted by mortgage… Continue reading Mortgage Lenders
The Telegraph – Money surge to carry Wall Street through the make-or-break line? Wall Street is at a key juncture. If the S&P does not push through this line, it is likely to break down for a while. They predict a reversal. There are plenty of triggers. The US is going into a Triple Witching… Continue reading Technically Speaking
The Telegraph – Ambrose Evans-Pritchard: Europe drawn into global currency wars as slump deepens Jean-Claude Juncker, EuroGroup chief, has signalled that Europe is no longer willing to be the last economic player holding the toxic parcel of an over-valued exchange rate, describing the euro as “dangerously high” after its three-month surge against the dollar, yuan… Continue reading Currency Wars