Barry Bannister, Managing Director of Equity Research at Stifel Nicolaus, joins Financial Sense Newshour to discuss whether to “Sell in May and go away” as well as the stark parallels between now and the 1930's.
As anyone knows who has tried in whatever way to opine on the financial markets, sometimes three of the most important words in the English language are the following, “I was wrong.” The second most important three words are “I don’t know.”
Money matters — it’s a maxim of Prof. Milton Friedman that I repeat often in my columns. Since the Northern Rock bank run of 2007 — the "opening shot" of the financial crisis — the money supply, broadly measured, in the United States, Great Britain, and the Eurozone has taken a beating.
Last month, an unlikely pair of senators – Sherrod Brown, an Ohio Democrat, and David Vitter, a Louisiana Republican – introduced a non-binding resolution calling for the end of the implicit subsidies that “too big to fail” (TBTF) banks enjoy.
Let’s take a look at a few graphs of the dollar, from Feb 1, 2013 through Friday May 17, 2013. Yes, I said graphs of the dollar. I’ve priced the dollar in gold first (of course), then silver, the euro, and even the yen. The pattern is obvious. The dollar is going up.
Since we last reported on the current Global Recession, the Global Leading Economic Indicator (GLEI) rose for the month of March, but is following an atypical growth pattern coming out of recession, with a slope far shallower than the normal expected rebound.
The 2003-07 credit cycle provides an instructive template on how the current cycle may eventually play out.
Since the S&P 500 made an intraday low of 1,536 on April 18, the widely-followed stock index has tacked on 130 points and the markets have migrated back to full-bore risk-on mode.
Before taking even one step further, I’ll tell you right up front that this is more of a “for fun” discussion than not. For many a moon I have followed a number of sentiment surveys that I believe can be quite helpful.
The elusive bottom in Chinese stocks is becoming more constructive here with a higher low being put in, above the 200-day moving average. MACD signaled a buy in May and is moving into positive trend territory on the daily chart.
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