Volatility Warning Signs Since the end of the Federal Reserve’s latest QE program, market volatility has picked up markedly. Since October, as QE came to its final bond buying conclusion, the drain of liquidity begin to financial market activity. As shown in the chart below, there have been three fairly sizable selloffs last quarter of…
I’ve posted before my thoughts‘ on the total irrelevance of the “Shiller PE” and since I’ve seen it popping up again out there recently, I thought I’d review it again…. The short version for those who do not want to read the whole post is that FAS 157 (2007) has skewed earnings so materially that any…
Introduction We think of oil exporting countries as financially sound with significant international reserves. And this is certainly valid for most of the Middle East sheikhdoms. But there are other exporters where the oil price drop will have a major impact. Below, the economic impact of lower oil prices on the leading exporters is examined….
The Euro continues to push further into the loss category, now extending losses against the U.S. Dollar and striking a 9-year trough in European trade, as speculation increases that the European Central Bank will need to embark on a massive easing program in order to stave off deflation. The latest data from the Eurozone has…
The price of crude has collapsed by 50% in a few months (and 40% since the end of QE3), which can only mean one thing: the Wall Street penguin brigade is out in full force with its spate of energy sector downgrades, none of which is more bombastic than that of Citigroup’s Robert Morris who…
Don’t bother reading the recent Fed minutes. I’ll save you the trouble. All of the Fed speak in there about the economy and inflation is meaningless. As I outlined last month (see “Stock Market Tail Wags Fed Dog”), the main determinant of Fed policy in recent years has not been economic data but the short-term machinations…
“You never know where the skeletons in the closet are or what company will be next,” warns one Chinese credit analyst as the CNY30 billion indebted Chinese developer Kaisa Group (that we initially discussed here) admits it can’t say if it plans to meet a bond deadline today. The builder of residential communities and shopping…
Constellation Brands Inc. (STZ), a leading international producer and marketer of beverage alcohol brands, released solid third-quarter fiscal 2015 results, wherein adjusted earnings of $1.23 a share surpassed the Zacks Consensus Estimate of $1.14. Moreover, the bottom line rose nearly 12% from $1.10 a share earned in the year-ago quarter. Based on the strong beer…
I can’t say there’s anything particularly new in James Surowieki’s New Yorker article on the various ways we subsidize home ownership vs. renting, but taken as a whole he provides a great starting primer and review of the arguments. I mean, don’t get me wrong, home ownership is awesome for some – even for many – but I don’t think…
Written by Gary The DOW touched 290 earlier and volume didn’t totally fall off as expected pushing equities fractionally higher. WTI oil is trending down and looks to put a cap on any further market gains today. By noon the averages were still elevated, but trading sideways while investors watch the U.S. Dollar trade lower. The…
