The two big financial news items in December have been the multiple Hindenburg Omen signals and the crash in crude oil prices. I recently went on CNBC to talk about the former. Its relationship to the latter is inescapable.
The latest Federal Reserve flow of funds data provides an up to date view of households' current asset allocation. Let's review. Household's largest holding is in equities; these comprise about 31% of their total financial assets.
Hyun Song Shin, who is on leave from Princeton while chief economist at the Bank for International Settlements in Basel, spends a lot of time wondering what could cause the next financial crisis. He suspects it will be something different from the leveraged bets on housing that were at the root of the last crisis.
The market will be looking to see if the Fed drops the phrase “considerable time” from their upcoming December 17 statement. Changing the language would increase the odds of an interest rate hike coming in the next six months, something that could spook the stock and bond markets.
The intermediary-free, digital transactions characteristic of cryptocurrencies such as Bitcoin are an important step towards exchanges free of regulatory meddling. In addition, this technology should enable low-cost banking accessible to anyone with a cellphone.
For signs that the energy market is stabilizing we need to see default risk for the sector improve, which clearly hasn’t happened yet. Option adjusted spreads on the investment grade energy sector index are nearing a 5-year high and for the high yield energy index spreads have exploded...
The sharp drop in oil prices in recent days has been weighing on markets in the last few sessions. Pre-open sentiment appears to be indicating a positive open, with strong retail sales reading helping the mood.
The Advance Retail Sales Report released this morning shows that sales in November came in at 0.7% (0.72% at two decimals) month-over-month, up from 04% in October. Core Retail Sales (ex Autos) came in at 0.5% (0.47% at two decimals), up from 0.4% in October.
Adherents of index investing in Canada have had a rough month as falling oil prices have inflicted considerable pain on not just the energy sector but the entire Canadian market. After surveying the landscape I’ve finally thrown in the towel on the TSX...
Both Paul Krugman and Ryan Avent are pushing back on the Federal Reserve's apparent intent to raise rates in the middle of next year. Why is the Fed heading in this direction?