Earlier in the month I suggested that we would likely hit a soft patch in Q2 and projected that the markets would remain weak through most of May. However, given the risk of recession remains a remote possibility, any pullback in the markets would serve as a buying opportunity. I believe the U.S. economy is still on a growth trajectory and if an economically weak Europe can re-energize in the second half, then the markets should head higher with cyclical sectors leading the charge.
Friday, April 11th, 2013, began like so many before it, with gold at $1561, about $5 above its opening price on the previous Monday, having traded as high as $1590 and as low as $1550. In short, it had been an uneventful week.
David Stockman’s The Great Deformation is a tour de force work of historical revisionism that demolishes the conventional economic and political wisdom prevailing both prior to and in the aftermath of the 2008 global financial crisis.
Here’s what’s going on with the markets, in my honest opinion. It’s a bull market in stocks, according to both the Dow Theory and the PTI, and has been since mid-2009.
If you were watching your trading screen today at about noon central you got a hell of a surprise when the market suddenly collapsed on huge volume, with the S&P futures dropping from 1573 to 1558 in seconds and then recovering over the next five minutes or so all of the loss.
Economist Robert J. Samuelson just published an unintentionally funny article in Capital Journal on the bemusement today’s economists feel after being wrong about virtually everything for the past decade.
If politicians want to keep the borrow-and-spend party going “just one more election cycle” and if no one takes away the punchbowl, the Bang! moment will most certainly arrive.
The crypto-currency Bitcoin is still merely a speck on the global monetary landscape. It is young, experimental, and for all we know, it may ultimately fail to break into the monetary mainstream.
One of the apparent conundrums of US Fed money printing in the current cycle is lack of headline inflation, at least as measured by the CPI. Certainly the CPI calculation itself is open to debate in terms of whether it is accurately depicting the cost of living in the US.
We have all heard the story about oil supply supposedly rising and falling for geological reasons. But what if the story is a little different from this--oil production rises and falls for economic reasons?
FS Newshour Q-Line
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