Given how well the credit markets warned of the last two major turning points in the market I respect the message of the credit markets over the stock market when the two do not confirm each other, as they are currently.
We recently interviewed Avi Gilburt of ElliotWaveTrader.net, a widely followed metals and market analyst who is currently ranked as the highest "Opinion Leader" on gold and precious metals at Seeking Alpha. Here is a summary of his interview with Q&A below.
There has been a clear preference this year for large cap stocks over small cap. This is readily visible when looking at performance of the Russell indices with the mega cap stocks like the Russell Top 50 Index up just under 5% year-to-date (YTD) while...
Broad-based increases in the LEI over the last six months signal an economy that is expanding in the near term and may even somewhat accelerate in the second half.
In his recent interview with Financial Sense Newshour, EconoMonitor's Satyajit Das explains how the massive search for yield is hitting new extremes.
Once an economic recovery picks up steam and inflationary pressures begin to rise, the market's reaction function "switches polarity" and incoming economic data is now interpreted as a negative market signal because it means there is a greater chance the Fed will be raising interest rates in the near future. This is where we find ourselves now.
In an age when governments of every political leaning and ideological stripe distort economic data to promote their parties’ interests, it is hardly surprising that the nation’s inflation rate is reported in a manner that best suits their political needs.