Not quite outdoing President Trump, Elon Musk took on the media/ financial press when he refused to answer some questions during a conference call and then vowed to bury the shorts. But even Musk’s meltdown this week failed to tank Tesla, although the stock remains under pressure Equity markets once again shrugged off national discord…
Rhetorical questions, by rationale, are rooted in truth. We all know some of the classics: “Does a bear relieve itself in the woods?” “Do politicians do different from that which they promise?” “Is the stock market going to crash?” “Are the Cleveland Browns a bad football team?” And as we queried a week ago, will…
Albert Einstein was, it turns out, apparently not the person who defined insanity as “doing the same thing over and over again and expecting a different result” but it’s a good definition just the same. The definition certainly applies in economics and financial markets when we apply regression analysis to data on the assumption that nothing…
Talking Points: Eurozone PMI Confirms Cooling Growth; EURUSD Weakness Set to Continue. EURUSD Eases as Euro-Zone Inflation Data Miss Expectations. Fundamental Forecast for the Euro: Neutral It was another rough week for the Euro as sellers remained in control against most major currencies. The notable exception being the British Pound, as GBP remains in the midst of an…
Last week was a busy week of earnings reports for many sectors, including energy infrastructure. Growing energy sector profitability is feeding through to higher returns to investors. Over the past month the S&P Energy Sector ETF (XLE) has outperformed the S&P by over 9%. RBN Energy has a good blog post (see Better – E&P Profits…
The economic calendar is normal, with an emphasis on inflation data. The week will begin with analysis of the annual Berkshire Hathaway meeting, the wisdom of Buffett and Munger, and a multi-hour CNBC program including Warren Buffett, Charlie Munger, and Bill Gates. While the questions will range widely, the punditry will soon turn to the…
This week we’ll begin with our monthly and weekly forecasts of the currency pairs worth watching. The first part of our forecast is based upon our research of the past 16 years of Forex prices, which show that the following methodologies have all produced profitable results: Trading the two currencies that are trending the most strongly over…
Dollar/yen made a move on 110 but failed to break to higher ground. The pair eventually ended the busy week almost unchanged. Is this a necessary consolidation or the beginning of a downfall? The US inflation report stands out as the ultimate decision maker for the next moves of the pair as geopolitics slide to the…
Stocks may have logged a small loss last week, but it could have been worse. Much worse, in fact. For a couple of hours on Thursday the key indices were below some pivotal support lines. They ended up reversing their intraday losses, setting up a nice gain on Friday that pushed us back to…
One has to wonder what alternate universe the ECB resides in, for multiple reasons. Mission Accomplished – Not Reuters reports ECB making ‘substantial’ inflation progress: Praet. “We cannot yet declare ‘mission accomplished’ on the inflation front, but we have made substantial progress on the path towards a sustained adjustment in inflation,” Praet, considered a dove on the…
