The Alleged Evils of “Volatility” Whenever there is talk in the popular press or in the mainstream financial press about “heightened volatility” in the stock market, it is a euphemism for “the sucker is going down!”. Naturally, with most market participants positioned for rising prices, especially when said prices are in nosebleed territory (stocks are…
The USD/CAD pair fell during the course of the session on Friday, but found enough support below to turn things back around and form a hammer. The hammer, of course, is one of the strongest candles you can get in the Forex world, so I think that it is only a matter of time before…
In an age of Algorithms, High Frequency Trading, Quant-injected performance engines and every Casino Patron with an e-Trade account hyper-stimulating the market after each bit of news that is fed (no pun intended) to us by the financial media and Policy Central, the lowly individual can be forgiven for feeling small and vulnerable; for feeling…
When one hears talk about the Wicksellian natural rate of interest, one hears that a real rate below the natural rate will cause inflation and economic heating. Then a real rate above the natural rate will lead to disinflation and economic cooling. “Wicksellian analysis is an older tradition; it argues that there is at any…
(from my colleagues Dr. Win Thin and Ilan Solot) Positive momentum for EM assets looks to extend its moves from last week. EM sentiment is being buoyed by gains in developed markets equity indices, the weaker dollar more broadly, and gains in the commodity space. Regarding the latter, we note that the moves in the…
(The Ferrari 458 Speciale A. Image via Ferrari website) Ferrari parent company Fiat Chrysler Automobiles announced today it plans to set the trading price for the impending Ferrari IPO at $48 to $52 per share and sell off roughly 10% of the company. The automotive company hopes to raise about $1 billion from the investors. After…
By Rupert Hargreaves At the end of last week, Credit Suisse published a research report on its 18 contrarian stock ideas. What’s special about this report is that it highlights the companies where Credit Suisse’s analysts hold a view that goes against the consensus. What’s more, the companies have been selected as the bank’s analysis reveals…
CLICK ON CHART TO ENLARGE Like almost every index on the planet, Small Caps have experienced softness of late. The decline took the index down to rising channel support the week before last, where it created a reversal pattern (bullish wick), at support. Last weeks rally in stocks, pushed small caps to the top of…
If you had invested in gold at the beginning of this year and did not cash out at the end of January, that investment probably had not done very well for you. But, your luck in gold could be about to change. In the past two months or so, GLD has been working hard to…
I started Pento Portfolio Strategies three years ago with the knowledge that the unprecedented level of fiat credit creation had rendered the globe debt disabled and would result in mass global sovereign default. As a consequence, there would be wild swings between inflation and deflation dependent upon the government provisions of fiscal stimulus, Quantitative Easing…
