Since late 2012, the Bank of Japan has launched an all-out war to devalue their currency. Why? As outlined previously, Japan faces two ticking time bombs of mounting debts and worsening demographics. The implications of these forces for the global markets are important to understand.
The Latest Conference Board Leading Economic Index (LEI) for November is now available. The index rose 0.6 percent to 105.5. October was revised to downward 104.9 percent (2004 = 100). The latest number came in slightly above the 0.5 percent forecast by Investing.com.
Break-even rates are the difference between treasuries and the same-duration Treasury Inflation-Protected Securities (TIPS). The break-even rate turned negative yesterday for the first time since 2009.
The world’s prominent central banks are pursuing an accommodative monetary policy and this bodes well for the stock market. Remember, when it comes to investing, monetary policy trumps everything else and the risk free rate of return determines the value of every asset.
The cluster of Hindenburg Omens on the NASDAQ, S&P 500, and Russell 2000 correctly warned of a pullback in the markets but now that we appear to be stabilizing with the FOMC meeting out of the way how should investors view the recent market weakness?
The Fed remains in the spotlight today, with the central bank expected to give investors a roadmap for the future course of monetary policy. There are plenty of other headlines as well, ranging from a continued oil price sell-off...
Winston Churchill famously said of Russian foreign policy that it was "a riddle, wrapped in a mystery, inside an enigma." What people leave out is what followed. Churchill offered an answer: "perhaps there is a key. That key is Russian national interest."
In the wake of a widely unexpected, huge oil price decline, I have received many questions and comments. Some speculate U.S. pressure on Saudi Arabia to punish Russia. Others think "big oil" is out to punish the frackers.
According to the Federal Reserve, "Industrial production increased 1.3 percent in November after edging up in October; output is now reported to have risen at a faster pace over the period from June through October than previously published.
The Financial Times ran a very interesting article last week called “China: Turning away from the dollar”. It got a lot of attention, at least among China analysts, and I was asked several times by friends and clients for my response. The authors, James Kynge and Josh Noble, begin...