The Financial Times – Lex: Three scenarios for 2011 Here, then, are three plausible scenarios for 2011. The Crab: markets carry on as they did in 2010, undulating in response to the latest economic news. Exceptional stimulus from governments and resilient demand from China allows a continued slow and messy recovery from the crisis; the… Continue reading A Look Forward To 2011
Zero Hedge (blog) – Must See: Howard Davidowitz Destroys The Recovery Illusion, Debunks The Consumer Renaissance Today’s must see TV comes from the following interview of Pimm Fox on the consumer and the economy with retail expert Howard Davidowitz, who in 10 minutes provides more quality content and logical thought than we have seen from… Continue reading Recovery….What Recovery?
<Click on chart for larger image> The Wall Street Journal – As Euphoria Abounds, Some Warning Signs Maybe it’s just the eggnog talking, but Wall Street has given itself over to a glass-overflowing mentality. Expectations for stock-market gains and economic growth rarely have been more upbeat. Bullish sentiment has been above its historical average for… Continue reading No More “Wall Of Worry” To Climb
The Wall Street Journal – Central bankers intervene as Asian currencies surge SOUTH Korea, Malaysia and Thailand’s central banks are understood to have to intervened as Asian currencies surged against the US dollar. The rise in the currencies yesterday was sparked on optimism about the region’s economic outlook, underscored by strong economic data from China… Continue reading Asian Central Banks
Bloomberg.com – Faber Says Long-Term U.S. Treasuries Are `Suicidal’ Investment Marc Faber, who advised investors to buy U.S. stocks in March 2009 as the Standard & Poor’s 500 Index began a rally of as much as 86 percent, said U.S. Treasuries are a “suicidal” investment. Government bonds are likely to decline, said Faber, who publishes… Continue reading Rising Yields
The Financial Times – Commercial property loans pose new threat What will happen to the financial system if US interest rates keep rising? That is a question many investors are pondering, given the recent sharp upward swing in US Treasury yields. There is plenty to fret about: higher rates could hurt US homeowners, for example,… Continue reading Commercial Property Loans
Reuters – Ex-Treasury chief Paulson loses $1 mln on DC home Few know better than former Treasury Secretary Henry Paulson how the struggling U.S. economy has battered home prices. As former President George W. Bush’s top economic adviser, Paulson played a lead role battling the U.S. housing downturn and deep financial crisis it sparked. But… Continue reading Welcome To The Housing Crunch Hank Paulson
None Today
A client asked us the following yesterday: Much has been written about the large net flows into bond mutual funds over the last two years, and flat-to-negative flows into equity funds over the same period. We were wondering what effect the growth of ETFs has had on stock and bond mutual fund flows. Are bond… Continue reading Are Mutual Fund Investors Switching To ETFs?
<Click on chart for larger image> <Click on chart for larger Image> Zero Hedge (Blog) – After 33 Consecutive Weeks Of Outflows, ICI Reports First Inflow Into US Equity Funds As Bond Outflows Persist The inflection point has arrived. After pulling money for 33 consecutive weeks, and withdrawing over $98 billion in capital from domestic… Continue reading Weekly Equity Mutual Funds Flows Increase, Weekly Bond Mutual Fund Flows Decrease Again
<Click on chart for larger image> The Telegraph (UK) – Italy’s debt costs approach red zone Yields on 10-year bonds rose 10 basis points to 4.86pc after a poor auction of short-term debt in Rome. The Italian treasury had to pay 1.7pc to sell €8.5bn (£7.2bn) of six-month bills in a thin post-Christmas market, up… Continue reading The Debt Crisis In Italy Is Getting Worse
<Click on any chart for larger image> Charts courtesy of The Chart Store The Wall Street Journal – Bank Failures at Highest Level Since 1992 More banks failed in 2010 than any year since the savings-and-loan crisis ended in 1992, but regulators said Wednesday that they believe failures have passed their peak. So far this… Continue reading U.S. Banks