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Two Political Trends
January 15, 2020
Last night was the final Democrat debate before the Iowa caucus. Today the House is expected to vote to send the articles of impeachment to the Senate.
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Quick Comments/What We’re Reading
January 15, 2020
Today's topics include the New York Fed releases its latest repo schedule, deregulation, the growth of passive investing, where have all the bear markets gone?, business cycles are different these days, old fashioned indicators, high yield issuance, a potential change in the release of U.S. economic data and more on demographics.
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Cartoons
January 15, 2020
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The New Repo Problem…Too Much Supply?
January 14, 2020
The risk in the repo market is no longer a lack of liquidity. Rather, because the Fed's support system does not charge a penalty rate, banks have little incentive to pull back from the repo facility. This leaves the Fed with few clues as to when the system is properly funded, risking an oversupply of liquidity.
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Inflation Watch – Low Bar Set for a Rise in Core PCE
January 14, 2020
Boston Fed President Eric Rosengren recently pointed out some favorable arithmetic could lead to a bump higher in Core PCE over the next several months.
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Quick Comments/What We’re Reading
January 14, 2020
Today's topics include the Fed considers lending directly to hedge funds, a review of European demographics, the Fed vs. the stock market, comparing Chinese A-shares to H-shares, where's the wage growth?, the British pound, the trade war, more on earnings, gauging the impact from cyberattacks, Tesla's rise continues, hedge funds benefit from fewer analysts, say goodbye to bonuses, CFOs remain extremely pessimistic, the Fed's bubble in the making and determining the reasons for low global growth.
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Cartoons
January 14, 2020
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Earnings Season Starts This Week
January 13, 2020
In 2019 the S&P 500 was up 31% on the hope that future earnings would justify the now lofty valuations. Companies will begin reporting Q4 2019 earnings this week. While quarterly results do not need to reflect all the earnings increases hoped for, they do need to show signs that better results are coming.
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Quick Comments/What We’re Reading
January 13, 2020
Today's topics include debunking the January Effect, Fed remittances to Treasury continue lower, Sanders continues to gain momentum, Kashkari chimes in on Fed policy, tallying the costs of the trade war, Google closes in on $1 trillion club, how to fight the next recession, growth vs. value stocks, the behemoths known as Blackrock and Vanguard, Japanification, new faces at the ECB and the exodus from Greenwich.
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Cartoons
January 13, 2020
Newsclips
Employment in Pictures – Job Gains Streak Hits 111 Consecutive Months
January 10, 2020
The U.S. has now seen 111 consecutive months of payroll growth. There has not been a negative payroll number since September 2010!