Charts of the Week Topics Covered This Week Include: Is QE2 Making The Rich Richer? S&P 500 Total Return Index Sovereign CDS Costs: Two Directions, Little Impact PIIGS Easing, Europe, and Earnings Risk And Return After Jackson Hole The Magical Change In Owners’ Equivalent Rent Behavior Foreign Direct Investment In U.S. Not Rising Yet Global… Continue reading Untitled
<Click on chart for larger image> The Wall Street Journal – Europe’s Crisis Widens Investors dismissed European leaders’ latest attempt to restore market calm, raising doubts about whether governments can rebuild confidence in the region’s common currency amid signs that the debt crisis is creeping deeper into the Continent. The euro fell to a 10-week… Continue reading Trouble In Europe
<click on chart for larger image> The Wall Street Journal – Slump in Housing Prices Deepens The U.S. housing market is showing signs of falling deeper into a slump that could weigh on the nation’s economic recovery. Home prices nationwide were down 1.5% in the third quarter, compared with a year ago, according to the… Continue reading Home Prices Fall Again
<Click on chart for larger image> The Wall Street Journal – ‘Santa Claus Rally’ at Top of Investors’ Wish List The U.S. stock market’s best-performing month on a historic basis is only days away, but investors would be wise to tread cautiously as December approaches. December typically has generated the best returns for U.S. stock… Continue reading Will December Be A Good Month For Stocks?
Real Time Economics (WSJ Blog) – Euro Zone Members as U.S. States To get a sense of scale, Real Time Economics compared the 2009 output of goods and services for members of the euro zone to the output of U.S. states. The economy of Spain, for instance, is about the same size as the combined… Continue reading Comparing U.S. And Euro Zone GDP
The Associated Press – Roubini says yuan appreciation in China’s interest A stronger Chinese currency would help not just the United States and other trading partners but China itself by cooling rising inflation, economist Nouriel Roubini said Wednesday. Washington and others are pressing Beijing to ease currency controls that they say keep its yuan undervalued,… Continue reading Inflation In China
Bloomberg.com – Fed to Name Recipients of $3.3 Trillion in Aid During Crisis The Federal Reserve, under orders from Congress, plans today to identify recipients of $3.3 trillion in emergency aid the central bank provided as it fought the worst financial crisis since the Great Depression. The Fed intends to post the data on its… Continue reading Who Received Aid From The Federal Reserve?
None today
On November 8 we posted a series of charts showing the effect QE2, and POMO in particular, is having on various markets. We noted that the S&P 500, 10-year Treasury, 5-year Treasury, emerging market stocks, commodities, gold, the yen, and the euro all performed better on the 22 POMO days versus the 27 non-POMO days. … Continue reading Is QE2 Making The Rich Richer?
<Click on chart for larger image> MarketWatch – Is the tide turning? Is the Great Bond Bull Market finally coming to an end? Countless commentators (myself included) in recent months have concluded that it has, though in retrospect we’ve at best been premature — if not outright wrong. But there is the distinct possibility that… Continue reading Weekly Bond Fund Inflows Streak Comes To An End, Monthly Streak Still Intact
<Click on chart for larger image> The Wall Street Journal – EU Bailout Plans Fail to Bring Calm Financial market pressure on Europe’s weaker economies intensified Monday as a weekend rescue plan for Ireland and the outlines of a bailout fund failed to quell investor nervousness about possible government defaults. Borrowing costs for Portugal, Spain,… Continue reading EU Contagion
<Click on chart for larger image> Calculated Risk (Blog) – Home Sales: Distressing Gap This graph shows existing home sales (left axis) and new home sales (right axis) through October. This graph starts in 1994, but the relationship has been fairly steady back to the ’60s. Then along came the housing bubble and bust, and… Continue reading Housing’s Distressing Gap