The S&P 500 was off for the third straight day of trading. The average closed lower by 0.84% and the Dow was lower by the same amount. Semiconductors, media, biotech, and regional banks were laggards today while leadership came from semiconductor equipment makers, telecom, and homebuilders.
Also, if consensus is correct, bond markets are at serious risk
Felix Zulauf, a member of the Barron’s Roundtable for over 20 years and a former global strategist at UBS, joins Financial Sense Newshour to cover a wide range of global macro issues, including today’s deflationary environment versus the inflationary 1970’s, Japan as the likely catalyst of the next global crisis, why the bond market is in trouble, and that gold could decline before another buying opportunity. Felix also does not believe that the Fed will ease off its QE program in 2013.
U.S. equity sector performance suggests that a re-pricing of Fed expectations is slowly developing.
Japan spent US$75.4 billion on LNG last year, paying an average price of US$16.60 per million BTU—while gas prices in the United States averaged just US$2.75. No Japanese politician, economist, or grocer thinks that makes sense.