Jeffrey Saut, Chief Investment Strategist for Raymond James, explains how those citing Fed liquidity as the only driver of U.S. stocks are failing to recognize a much larger and unstoppable trend: an “American industrial renaissance.”
US Weakness Pushing Japan, Israel and India to Become More Assertive
As the tentacles of the central planning octopus reach ever more forcefully into more corners of the economy, the free market is inevitably in retreat. But nobody seems to notice or to care.
The market is now waiting for Janet Yellen’s first news conference as the Fed Chairwoman this afternoon. The weak start to the Q1 earnings season with underwhelming reports from FedEx (FDX), Oracle (ORCL) and General Mills (GIS) will also attract some attention.
We Are in the Early Stages of Rising Interest Rates
Throughout the current economic cycle I have continually referred to the characterization of “the tale of two economies”. Specifically, I have been struck by the dichotomy between the fate and fortunes of large US companies relative to their much smaller business brethren.
Last week, towards the end of a very lively and comprehensive roundtable discussion on gold, Financial Sense Newshour host Jim Puplava asked his guests whether they thought the gold market was being manipulated. Of the three responses, CPM Group’s Jeff Christian was the most interesting
The FDIC has sued 16 of the largest banks in the world plus the British Bankers Association (BBA) alleging that they engaged in fraud and collusion to manipulate the London Inter-bank Offered Rate (LIBOR). BBA called LIBOR “The most important number in the world.”
Given the widespread deterioration I am seeing we may be setting up for a larger correction, with the mid-term election cycle predicting an intermediate peak in the market between now and the end of April.