<Click on chart for larger image> The Wall Street Journal – Home Builders’ Outlook Stays Fragile The road back to health for the U.S. housing market is shaping up to be a prolonged and painful process. As a result, the outlook isn’t getting much better for the suffering home-building industry. A Commerce Department report due… Continue reading Housing
Gallup – In U.S., 54% Have Stock Market Investments, Lowest Since 1999 Americans point to real estate as the best long-term investment Even as stocks have returned to lofty heights from their March 2009 lows, the percentage of Americans saying they hold individual stocks, stock mutual funds, or stocks in their 401(k) or IRA fell… Continue reading Who Owns Stocks?
<Click on chart for larger image> The Financial Times – Hedge funds reap post-crisis gains Champagne corks might not be flying as high as they once did in Mayfair or Connecticut, but the hedge fund industry has reason to feel chipper. Statistics from the industry’s leading data provider, Hedge Fund Research, this week showed that… Continue reading Hedge Funds
Barron’s – Dangerous Views of Volatility Pay attention to the VIX, but don’t just follow the crowd So what does it mean if VIX is below 15? Probably nothing. The same is true when it crosses 20, a number pundits have made into the market’s Maginot Line, separating good times from bad times. A low… Continue reading The VIX
<Click on chart for larger image> The Financial Times – PepsiCo questions Fed inflation guide PepsiCo’s chief financial officer has criticised US policymakers’ focus on “core” inflation, arguing that it overlooks the impact of rising prices on consumer spending power. The Federal Reserve’s preference for the core price measure that excludes food and energy has… Continue reading Core vs. Headline Inflation, Ask Pepsi
Barron’s – Dry and High A months-long drought in the U.S. has driven up wheat prices, and there is no sign of relief coming soon Blame it on the lack of rain. Wheat prices are on fire, as a relentless drought has devastated crops in Oklahoma and Texas, which saw raging wildfires after more than… Continue reading Rain Makes Grains
<Click on chart for larger image> Xinhua – China should cap forex reserves at 1.3 trillion U.S. dollars: China banker China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday. The amount of foreign exchange reserves should be restricted to between 800… Continue reading Should China’s Dollar Reserves Decline By 2/3s?
Barron’s – Jack Willoughby: Watch Your Step America’s money managers are bullish in Barron’s latest Big Money poll, but picking their spots with care. The crowd is seeking safety in big, defensive stocks. Investors have popped the corks this year, but they’re not quite ready to drain the champagne. That’s the message of our latest… Continue reading Big Money Remains Bullish
None Today
Comment Bernanke’s first press conference is much anticipated. Below are some key issues we think the press will likely bring up: If there was no legal authority to bail out Lehman, why was legal authority granted so easily for the AIG bailout 48 hours later? If QE2 is pushing stock prices higher, which Bernanke has… Continue reading Bernanke’s Press Conference
<Click on chart for larger image> Bloomberg.com – Investors In For a Shock If Rising Rates Sink Bonds, Envision’s Cohen Says Investors who poured more than half a trillion dollars into bond mutual funds since 2007 will experience a market crash when interest rates rise, according to Marilyn Cohen, a Los Angeles money manager. Cohen… Continue reading When Rates Rise …
<Click on chart for larger image> The Economist – The Debt Crisis: Negative Watch It is three years since Bear Stearns was pushed into the arms of J P Morgan and the fundamental debt problem has not been resolved. The debt has been moved around but not eliminated. This has undoubtedly bought time and I… Continue reading Debt Never Goes Away