Financial Sense

2-Year T-Note Shows Path for FOMC
Tom McClellan's picture

To review briefly, this week’s chart shows a comparison between the 2-year Treasury Note yield and the target rate for Fed Funds, which is set by the FOMC. The NY Fed is then tasked with adding or withdrawing...

How Much Crude Oil Do You Consume on a Daily Basis?
Oil Price's picture

Oil. The commodity. We know what it’s worth – at least we thought we did – but what does a barrel of the black stuff get you in real life? Before we get theoretical, let’s first consider how much oil you use.

NYSE Margin Debt Declined in January
Doug Short's picture

The New York Stock Exchange publishes end-of-month data for margin debt on the NYXdata website, where we can also find historical data back to 1959. Let's examine the numbers and study the relationship between...

GDP Gives Market No Tail-Wind
Sheraz Mian's picture

The GDP report doesn’t give stocks enough reason to build on their recent gains. That’s particularly the case after a very strong month for stocks that has pushed the broad indexes into record territory, with even...

Push Back: Impacts of a Rising Dollar on Corporate Earnings
Marc Chandler's picture

The discussion of the dollar's impact on overseas corporate earnings is often cast in narrow terms: locally incurred costs are not included, hedging strategies are not examined, and savings from borrowing in foreign currencies are...

Termites Beneath USD Foundation Masked by Strength Against Euro/Yen
Chris Puplava's picture

While the USD Index is rallying there is deterioration beneath the surface that suggests a cyclical correction in the dollar may be in the offing. We can look at breadth to determine how strong or weak the dollar is by comparing it to many currencies across the globe.

The Trojan Horse Battle for the Euro
John Butler's picture

At a recent conference hosted by a major global bank in London I sat on a panel alongside a macro investment strategist who referred to the euro as a ‘Trojan horse’ intended to force fiscal austerity on...

Europe’s Survival Depends on Debt Restructuring, Not Growth
Michael Pettis's picture

The biggest constraint to the EU’s survival is debt. Economists are notoriously inept at understanding how balance sheets function in a dynamic system...Europe will not grow, the reforms will not “work”, and unemployment will not drop...

Oil Price Collapse: Supply or Demand?
Matthew Kerkhoff's picture

As oil prices plunged in recent months, debate heated up regarding whether the drop was due to falling global demand, rising supply, or a combination of both. For substantial periods during the declines...

OPEC’s Influence Has Long Been Exaggerated
Global Risk Insights's picture

The nearly 50% decline in oil prices questions the future of the Organization of the Petroleum Exporting Countries (OPEC) and casts doubt on its ability to influence prices. However, the role of OPEC has...