On April 25, 2012, Treasury Secretary Geithner made remarkable statements about the role of elite financial fraud and greed in producing our recurrent, intensifying financial crises.
Monday’s surprisingly strong manufacturing ISM report is followed up by a depressingly weak labor market reading from payroll processor Automatic Data Processing (ADP - Snapshot Report).
At the latest Casey Research conference, respected investment analyst Porter Stansberry stood at the podium and predicted that the price of oil will fall below US$40 per barrel within the next 12 months.
“Humble” is typically not an attribute associated with the Federal Reserve (Fed), especially in light of the trillions of dollars recently printed. Yet, in his latest press conference Fed Chairman Bernanke called for humility: we must be humble in setting monetary policy!
Better-than-expected first quarter earnings reports offset the less-than-inspiring economic reports in recent days and helped stocks get close to previous highs. But the surprisingly positive tone of this earnings season is unlikely to remain ‘newsy’ enough going forward since the reporting cycle is already beyond the halfway point.
We wonder why gasoline prices haven’t fallen in the U.S. even though U.S. consumption has been declining for several years. The 1.5 million barrel decline in U.S. demand in the past five years is far less than the demand growth in developing countries, and oil production has not managed to keep pace.
Alternatives to the common sources of edible oils simply do not exist in abundance. Support for soybean prices is also coming from growing inadequacies of supplies of alternative oil producing grains. One of those alternatives is canola.
Markets are broken. Accepted investment wisdom has been overturned and the basic tenets of value and diversification no longer work. The financial crisis put the market into a volatile ‘risk on, risk off’ – or Roro – mode for which there is no cure.
The currency markets are largest financial market in the world, and thus tracking currency movements and spotting inflection points can provide vital clues for how other asset classes will respond.
The rating downgrade of Spain and a slew of broadly favorable earnings reports will try to grab investors’ attention today, but they are unlikely to take the spotlight away from this morning’s mixed first quarter GDP report.