Even Bloomberg Notices that Something is Amiss As anyone who hasn’t been in a coma knows, assorted central bank interventions have failed to achieve their stated goals over the past several years. A recent article at Bloomberg focuses on their failure to reach their “inflation” targets. Of course, this particular failure is actually reason to celebrate, as…
Brazil, which is caught in a vicious recessionary spiral which is only set to get much worse before it gets better, tried to obtain some much needed cash when earlier today it conducted an auction to sell exploration rights for of its oil and gas. It was, in short, a disaster. According to Reuters, by midday Brazil…
Restaurant stocks have been quite hot lately thanks mainly to improving labor market and savings from low gas prices. The outlook for the industry remains positive in view of the upcoming holiday season when people tend to spend more on eating out and entertainment. Dallas based Dave and Buster’s Entertainment (PLAY) operates an arcade and restaurant…
The Bank of Japan’s optimistic outlook for the Japanese economy helped to push the Japanese Yen broadly higher. Earlier today, the BOJ announced that no changes were being made to its existing loose monetary policy. That satisfied investors who had expectations of more easing given the relative stagnancy of Japan’s economy and the shortfall of…
I did a snarky post (which is kind of a forte of mine) about GoPro late last February, which you can read here. But, once again, my snarkiness wasn’t snarky enough, because the stock was 50% higher then compared to now. I guess the old camera-on-a-stick technology makes a great IPO but not a great long-term…
In response to numerous allegations of missing gold, stolen gold, gold filled with tungsten, rehypothecated gold, leased gold, etc., Germany’s Central Bank has Listed All of Its Gold. In 2012 the Bundesbank found itself at the center of a storm when the German Federal Court of Auditors called on the central bank to physically take stock…
The following paragraphs get to the heart of why deflation is the current concern among market participants… First things first, why deflation means disaster for global stocks… When the Fed shoots for a stable inflation rate it not only represents a sweet spot for a healthy economy, it also represents a sweet spot for investor’s…
This is the sixth consecutive session the Canadian dollar is appreciating. The US dollar reached an 11-year high on September 29 near CAD1.3460. Today it traded to almost CAD1.2970. There have been four main drivers of the Canadian dollar advance. First, the Canadian economy contraction that persisted through the first part of the year ended…
Gallup’s US Job Creation Index remained at a seven-year high in today’s update for September. Is that a clue for thinking that last week’s disappointing employment report for September is only a temporary setback? The Gallup index was unchanged in September at +32—for the fifth straight month. This survey-based benchmark isn’t going anywhere, but perhaps the stronger message is…
Quick update today. The Dow hit some resistance this morning as noted on the chart above. This coupled with the fact that the S+P 500 is on top of resistance, leads me to believe we may see some type of selling/profit taking reaction soon. At this point I wouldn’t expect to see much more than a…
