Bloomberg Businessweek – Fed QE3 May Hit $1 Trillion as Fiscal Deadlock Persists A fiscal boost to the economy is probably off the table as President Barack Obama negotiates revenue increases and spending cuts with leaders of a Democratic-controlled Senate and a House of Representatives led by Republicans, Edelstein said. That may leave only the… Continue reading Estimating QE3’s Price Tag
MarketBeat (WSJ Blog) – Chart of the Day: Dow’s Big Tumble Joins Exclusive Territory The Dow dropped as much as 369 points, or 2.8%, at its morning lows. Putting that number into historical context shows today’s tumble has joined some exclusive territory. Since 1950, today’s drop is only the 69th time the Dow has dropped… Continue reading Some Perspective On Yesterday’s Decline
Bloomberg.com – Samaras Secures Greek Austerity Bill as Coalition Unity Frays Greek Prime Minister Antonis Samaras mustered support in Parliament to approve austerity measures needed to unlock bailout funds, in a tense vote that weakened his majority after the expulsion of seven dissenting lawmakers. The bill on pension, wage and benefit cuts was approved with… Continue reading More Austerity For Greece
<Click on chart for larger image> The Wall Street Journal – Greek Jobless Rate Hits New High The rate of unemployment in Greece rose to a new record in August as the country prepares for a further round of austerity and another year of economic contraction in 2013. Elstat, the Greek statistical agency, Thursday said… Continue reading Greek Unemployment
Zero Hedge (Blog) – Marc Faber’s Asset Protection Plan: “Buy A Machine Gun”, No Really, “You’re Right, Buy A Tank” Trish Regan and Adam Johnson do their best to hold themselves together in this sublime rant by ‘Gloom, Boom & Doom’s Marc Faber on Bloomberg TV as he sees Obama’s re-election as “very negative for… Continue reading Send Lawyers, Guns & Money
The Wall Street Journal – New Investment Haven Treasurys have a new rival for safe haven status: U.S. companies. Bonds of Exxon Mobil XOM -3.24%and Johnson & Johnson JNJ -0.94%are trading with yields below those of comparable Treasurys, a sign that investors perceive them as a safer bet. It is a rare phenomenon that some… Continue reading Can AAA Corporates Trade Through Treasuries?
The Atlantic – Nate Silver Wasn’t the Only One to Nail the Election—nor Was He the First Now, who got it most wrong? One person who was too aggressive Jim Cramer, for one, although his 440 was always unhinged (see how bizarre his map would have looked here). And on the pro-Romney end of the… Continue reading The Award For The Worst Election Forecaster (The Anti Nate Silver) Goes To … Jim Cramer!
Charts of the Week Topics Covered This Week Include: Next Order Of Business – The Fiscal Cliff Earnings Update Junk Bonds A Look At Mortgages Housing Junk Bond ETFs The Dollar’s Safe Haven Status Updated Look At The U.S. Economy Employment In Pictures Eurozone Unemployment IAt A New Record Mutual Fund Flows Dr. Siegel’s Track… Continue reading Charts of the Week
<Click on chart for larger image> The Financial Times – Attention quickly turns to fiscal cliff President Barack Obama’s re-election on Tuesday night – combined with little change in the balance of power in Congress – means the same forces that have been gridlocked on budgetary policy for the past few years will now be… Continue reading Next Order Of Business – The Fiscal Cliff
<Click to view image> The Wall Street Journal – Economic Unease Looms After Win In his second term, freshly re-elected President Barack Obama confronts an economy that offers glimmers of long-missing vitality but remains held back by fiscal and regulatory uncertainties and slowing global growth. The U.S. economy has shown signs of improvement in recent… Continue reading The Future Of The U.S. Economy
Comment The chart below shows the last 3 trading days of December S&P futures. There have been 4 moves of more than 1%, 2 up and 2 down. Consider this chart before one asks, “why is the market selling off?” For now, stocks are actually moving sideways with a lot of volatility. Looking past this… Continue reading Election Volatility