<Click on chart for larger image> The Big Picture (Blog) – Bonds for the Long Run We have, throughout this week, alluded to the recent Bill Gross criticism on the Death of the Cult of Equities (See this and this). Several references to Stocks for the Long Run have been made, including the “Siegel constant”… Continue reading Bonds For The Long Run
The Wall Street Journal – When Interest Rates Turn Upside Down The European Financial Stability Facility, backed by the stronger governments of Europe, this week borrowed €1.43 billion ($1.77 billion) for three months at a yield of minus 0.0217%. Denmark recently raised 420 million kroner ($70 million) at minus 0.59%. Even more remarkable, Germany borrowed… Continue reading Negative Interest Rates
MarketBeat (WSJ Blog) – Dividends Galore! Most S&P 500 Companies Dishing Cash Since 1999 There are more S&P 500 companies paying dividends now than at any other point since December 1999. That’s according to some number crunching by data guru Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. Thirteen companies have started making… Continue reading Everybody Loves Dividends
Reuters – U.S. judge in Libor cases puts new lawsuits on hold A federal judge on Wednesday suspended several new lawsuits that allege banks rigged key interest rates, saying she first needed to sort through the issues in an earlier round of related lawsuits. U.S. District Judge Naomi Reice Buchwald said from the bench in… Continue reading Courts Being Overwhelmed By LIBOR Lawsuits
The Wall Street Journal – Knight Held $7 Billion of Stocks Due to Glitch Knight Capital Group Inc. was holding about $7 billion of stocks at one point on Wednesday last week—a far bigger figure than previously known—as a result of errant trades that forced it to seek emergency funding, according to people familiar with… Continue reading Knight Capital
The Wall Street Journal – Now, It Is Man vs. Machine In a move to repair its flagging bond-trading business, Morgan Stanley is scrambling to replace some of its well-paid bond traders with computers. The New York company is hiring programmers and technology specialists to help it trade bonds electronically and handle client orders in… Continue reading Computer Are Taking Over Wall Street
Real Time Economics (WSJ Blog) – Drought Effect on Consumer Food Prices Likely Muted The U.S. drought is going to drive up food prices next year, the Agriculture Department says. What exactly will that mean for consumer budgets? We did the math. The answer: Not that much. Americans, on average, will spend an additional $32.76… Continue reading How Will The Drought Affect Your Wallet Next Year?
Zero Hedge (Blog) – Rosenberg On The Pending Trade Shock And Q4’s 0% GDP Growth It would appear that the dilemma of the world exporting more than it imports (that we initially pointed out here) is starting to come to a head in reality with a negative export trade shock. As Gluskin Sheff’s David Rosenberg… Continue reading David Rosenberg Sees 0% GDP Growth In Our Future
<Click on chart for larger image> The Weekly Standard – Over 100 Million Now Receiving Federal Welfare A new chart set to be released later today by the Republican side of the Senate Budget Committee details a startling statistic: “Over 100 Million People in U.S. Now Receiving Some Form Of Federal Welfare.” “The federal government… Continue reading The Ever-Expanding Federal Welfare System
(h/t The Big Picture)
Conference Call Presentation/Charts of the Week Topics Covered This Week Include: The U.S. Economy – Still Struggling Leading And Coincident Measures Of The Economy Expected Earnings Growth Expected Revenue Growth S&P 500 Revenue Growth – Pointing To A Recession? The Federal Reserve’s Inflation Target Inflation Expectations – Too High For QE? What Is Needed For… Continue reading Conference Call Presentation/Charts of the Week
Nanex – The Rise of the HFT Machines The animated GIF above chronicles the rise of the HFT Algo Machines from January 2007 through January 2012. Audio: [audio:https://www.biancoresearch.com/bianco/SubscriberArea/newsclips/2012/08/s5d1fcfb.mp3|titles=Bloomberg Interview] Comment Jim Bianco was on Bloomberg radio yesterday morning discussing high frequency trading, the economy and Europe. To listen to the interview click above. To view… Continue reading Talking About High Frequency Trading