Apparently, no one sent the market memo to the S&P 500 until last week when investors woke up to the prospect of “stretched” valuations after months of warnings from US Federal Reserve Chairwoman Janet Yellen. Last Friday’s substantial losses come on the heels of global equity losses to which US benchmarks are not immune, but…
Economy – Additions & Updates Additions – inflation expectations, World trade, China electricity consumption & manufacturing Updates – initial jobless claims, housing, sentiment, manufacturing Asset Allocation – Additions & Updates Additions – US only allocations, currency trends Updates – none Economic Summary: Initial Jobless Claims – falling Inflation Expectations – on target Housing – existing home sales: expanding, new home sales: falling Sentiment…
There is a chart of the GDX relative to the Price of Gold. This is why some will say that the miners are ‘weak relative to the price of the metal.’ And they are. They can get even cheaper, and the underlying metal can also get ‘cheaper.’ Sentiment is obviously at a negative extreme, and…
“Everybody has a plan until they get punched in the mouth.” This quote, one of former heavyweight champion Mike Tyson’s most famous, is always relevant when investing. After countless hours of research, diversifying portfolios and strategies, investors feel confident about weathering a market storm — until they are punched in the mouth. Today, we are…
The big pre-open news today was the historic -8.48% Monday rout in the Shanghai Composite, an event that no doubt rattled the optimists hoping that the China benchmark index had bottomed out last week. Euro zone indexes also saw some suffering, with DAX and CAC 40 both deep in the red and destined to close…
The Atlanta Fed second quarter GDPNow final estimate came in at 2.4%. The second quarter GDP official “advance” estimate from the BEA is due out Thursday, July 30 along with the annual revision of the National Income and Product Accounts (NIPA). The Bloomberg Consensus Estimate for second quarter GDP is 2.9%, a half percentage-point higher than the Atlanta Fed…
“I am sure the euro will oblige us to introduce a new set of economic policy instruments. It is politically impossible to propose that now. But some day there will be a crisis and new instruments will be created.” – Romano Prodi, EU Commission president, December 2001 Prodi and the other leaders who forged the…
The U.S. stock market suffered its worst week (ending July 24) in months thanks to disappointing earnings results, especially from Apple (AAPL), Caterpillar (CAT) and International Business Machines (IBM) as well as a string of bleak sales or earnings outlook (read: 4 ETFs to Watch Post IBM 2Q Results). This is especially true as total earnings…
Stocks in the US continued to slide, in sympathy with China and a generally poor outlook for the world of real productivity and wealth. And in large part this is the rinse cycle of a wash-rinse stock market operation conducted by insiders that took US equity prices up to unsustainable levels in the first place. …
