CNBC – What small-cap stocks do next is crucial for the S&P 500 I’m watching the Russell 2000 closely, as it’s begun diverging from the S&P 500 recently, and that could signal trouble ahead for the broader market. The small-cap Russell 2000 typically moves in tandem with the S&P 500, and has begun underperforming. While the small caps have… Continue reading Small Cap Stocks And The S&P 500
The Bolivar is down 96% in the last year
Bloomberg Business – Under Powell, Wall Street Can Expect Steady Wins on Regulation Fed chair would partner with Randal Quarles on bank rules In Jerome Powell, banks won’t get a Federal Reserve chairman who is hell-bent on ripping up financial rules. But in some ways, that’s better for Wall Street. With a resume steeped in industry… Continue reading More On Jerome Powell Becoming The Next Fed Chair
The Wall Street Journal – Goldman Retreats From Options as Stock Derivatives Trading Struggles The situation looks more dire for some banks. In the first half of 2017, revenue from Barclays’s U.S. equity derivatives flow trading slumped to less than half of the $200 million it brought in the same period last year, according to a… Continue reading The Derivatives Business Hurts Bank Stocks
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Comment In the webcast above, Jim Bianco discusses his post titled Concentrated Stock Returns. OPEN Concentrated Stock Returns Webcast As we detailed in a May webcast, this is one of the most concentrated rallies in history. Only the 2000 tech bubble was comparably concentrated. While this rally also includes tech stocks, this rally… Continue reading Concentrated Stock Returns Webcast
No one has been able to find a consistent relationship where today's moves in the dollar affect tomorrow's earnings.
View PDF Bloomberg Business – Fed Signals December Hike On Track a Day Before Trump Announces Next Chair Federal Reserve officials voted unanimously to leave interest rates unchanged while signaling they remain on track to hike once more this year, a day before President Donald Trump plans to unveil his choice to lead the U.S. central… Continue reading Understanding Fedspeak
The real story today could be that Trump may appoint more independent thinkers as governors who are more likely to dissent.
The Economist – The Phillips curve may be broken for good IT HAS long been assumed that economic policymakers face a trade-off between unemployment and inflation. Let unemployment fall below its “natural” rate (the level of joblessness that results merely from the normal patterns of job gains and losses at any one time) and the economy… Continue reading The Phillips Curve Is Dead
The Financial Times – Myron Scholes: What investors can teach central banks about inflation Historic inflation targets are looking increasingly arbitrary in an age where structural changes are significantly altering how goods are supplied and consumed. Technological advances lift competition and productivity, putting downward pressure on prices. Automation by large companies will allow many countries… Continue reading Myron Scholes Tells Central Banks Inflation Containment Is No Longer Imperative