Editor's Picks
In this report, I consider the goals and methods of foreign exchange intervention and place today’s policies in their historical context. Also, I examine the evidence of where covert intervention—quite common historically—might possibly be taking place: Perhaps where you would least expect it.
Barry Bannister, Managing Director of Equity Research at Stifel Nicolaus, joins Financial Sense Newshour to discuss whether to “Sell in May and go away” as well as the stark parallels between now and the 1930's.
Money matters — it’s a maxim of Prof. Milton Friedman that I repeat often in my columns. Since the Northern Rock bank run of 2007 — the "opening shot" of the financial crisis — the money supply, broadly measured, in the United States, Great Britain, and the Eurozone has taken a beating.
The market is perhaps in the best shape it has been in over a year when looking at its trend and momentum. Perhaps the biggest development in recent weeks is the clear rotation away from defensive sectors and into cyclical sectors. This development is likely to propel the market even higher given 70% of the S&P 500 is made up of cyclical sectors. There is no erosion in either the market’s trend or momentum, and until we see erosion in the markets breadth and momentum the path of least resistance is clearly higher.
The Obama administration has come out in support of the idea of exporting U.S. natural gas. This stance is counterproductive and shortsighted, and if followed, it will prove harmful to domestic manufacturing (i.e., value generation) and to future generations of Americans.
Aside from the Federal Reserve and its policies, there is probably no other more controversial force in the financial markets today than high frequency trading. Since today also happens to be the three year anniversary of the Flash Crash—the very event that thrust HFT into the public spotlight—let’s take a moment and consider this topic from what’s been learned over recent years.
For most of us that work on Wall Street, it is fair to say the financial markets are more dependent on low rates and central banks than at any time in our careers.
Here are some precedents of central banks buying stocks to stimulate confidence or economic growth: The ball was started rolling by Hong Kong.
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.
Has the "shale revolution" changed the outlook for Peak Oil? Dr. Robert Hirsch shares his insights from a conference in the Middle East where leaders there are now starting to consider what happens when we reach the peak.
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