The short squeeze in the euro was sparked not by what Draghi said, but what he did not say. He did not commit the ECB in any way to buy sovereign bonds, which many had expected at least a hint of. Nor did he express the sense of urgency he did in the recent past….
Once upon a time, the UK economy was dominated by heavy industries such as steel making, coal mining, mass car production and shipbuilding, but under the leadership of Mrs. Thatcher’s conservatives in the 1980s, these activities were eclipsed by the rise of the service sector, dominated by London’s role as, arguably, the world’s leading financial…
Why are central banks buying equities outright and trading futures? Very simple – EURO CRISIS! I have reported that central banks have been buying equities because there is a real crisis underway in central bank reserves. Behind the curtain, they need diversity because the Euro Crisis has creates a Reserve Crisis. There is no real alternative to the US dollar…
Merge Healthcare Incorporated (MRGE – Analyst Report) was a big mover last session with its shares rising roughly 7% on the day. The move came on solid volume too with far more shares changing hands than in a normal session. This breaks the recent trend of the company as the stock is now trading above the past one…
Who could have seen that coming!!??? Apparently Draghi could not clarify exactly what he meant in 90 minutes, 3 hours ago!!!! *ECB SAID TO PREPARE BROAD-BASED QE PACKAGE FOR JANUARY MEETING So, despite telling us earlier than not January and not ready, we get this spurious headline just as EURUSD crossed 1.2450… Fun-durr-mentals indeed. It appears…
On Monday gold became almost 80 USD more expensive in no time and it is now listed north of 1,200 USD per ounce once again. At first sight there was not really a clear indication as to what caused the sudden surge in gold. But gold was not alone. Silver jumped up by no less…
Dollar General Corporation (DG – Analyst Report) reported lower-than-expected third-quarter fiscal 2014 results. Adjusted earnings of 79 cents per share fell a penny short of the Zacks Consensus Estimate but rose 9.7% from the year-ago period. Similarly, net sales of this Zacks Rank #2 (Buy) stock increased 7.8% to $4,724.4 million but came below…
CLICK ON CHART TO ENLARGE This long-term chart reflects a key test is at hand? What would you do here? Humbly, I feel this is one of the most important assets on the planet and what happens here should impact all of us in many, many ways!! Again, I feel this is one of the…
A subscriber just asked my thoughts on Euro exposure and how to hedge it. As usual for me, simplest is best; short the Euro (or FXE) and long USD (RYSBX) after a USD correction. As part of response I also worked up a chart showing hedged vs. unhedged European equity funds along with USD. HEDJ vs….
A radical new paper is doing the rounds of the analyst community, and it makes some strongly counter-intuitive assertions. It says the focus on Shareholder Value Maximisation (SVM), which has caught on since the ’90s, is the dumbest idea ever, and it is screwing up real returns. The paper presents some impressive data to support this…
