The tide has clearly gone out in the financial markets with the reining in of debt expansion in the mortgage markets, particularly to the subprime market.
As the saying goes, "What goes up must come down," is also true for financial markets and investing themes. Not only does sector rotation occur during a business cycle, but there can also be secular sector rotation into one sector.
As highlighted last week (08.22.07 Market Observation), the housing recession has spilled over, affecting consumer spending levels.
We are in a precarious position with the current credit crisis precipitated by the subprime mess. To see how the tentacles of the housing recession are spreading into the economy and financial markets and how serious things are, take a look at...
It's looking like 2007 will be the year that reality sets in for the financial markets. How many times were financial pundits calling for a housing bottom after we saw a brief up tick in various housing economic measures earlier in the spring?
This was the title for the U.S. Macro Outlook from Mark Zandi, Chief Economist and co-founder of Moody's Economy.com, Inc. released today which seems quite appropriate.
The markets vaulted north last Thursday and took nearly everyone by surprise. The top news story from Yahoo Finance on the day entitled, "Stocks Surge on Retail Sales Reports," had the following explanation for the markets move:
The markets were down sharply yesterday on negative news from big retailers indicating the housing spillover is getting worse, not better.
Yesterday's commentary looked at the overall energy picture since British Petroleum (BP) began collecting data in 1965.
Last week British Petroleum (BP) released their annual report on world energy, and today's WrapUp will highlight the general trends in energy for oil, natural gas, coal, uranium, as well as regional patterns in consumption, with the emphasis on the U.S., China, India, and the Middle East.