Financial Sense

Can the Economy Withstand Another Housing Breakdown?
Sy Harding's picture

With the three fascinations of the week, the Fed’s FOMC statement, the separation vote in Scotland, and the Alibaba IPO, now history, will investors re-focus on the economy? Given what the Fed actually said in its statement, and some recent economic reports, it might be a good idea.


What Is the VIX Fear Index Telling Us Now?
Chris Ciovacco's picture

When you get down to brass tacks, asset prices are governed by supply and demand. In the markets, the conviction of buyers relative to the conviction of sellers also plays a major role.


The Days of BABA Are Upon Us
Sheraz Mian's picture

The start of trading for shares of Alibaba and the retail availability of the new iPhones are today’s big developments. And the Scotland news is finally behind us, with Scots deciding to retain their 300-year old union with England.


Jim Bianco on Gold, Oil, and Why the Market Doesn't Care About Geopolitical Events
FS Staff's picture

Between Ukraine and ISIS, 2014 has been a year marked by geopolitical tension. Yet, contrary to intuition, market volatility has continued to trend downward along with the price of gold and oil, while stocks continue to hit new all-time highs. Why?


Companies' Stock Buybacks at Biggest Pace Since 2007
Michael Shedlock's picture

Companies bought back the most shares in 2007, right before the crash, and the least shares at the most opportune time in 2009. In practice, insiders buy low and sell high, and pocket cash from options all the way up. Insider activity is exactly the opposite of how companies treat shareholders.


OPEC Hints It May Act to Stop Oil Price Slide
Oil Price's picture

Oil prices may have gone as low as OPEC is willing to tolerate. After several months of price declines, the secretary-general of the Organization of Petroleum Exporting Countries (OPEC) says the group may cut its production target for 2015 because of an abundance of supply.


Fed Comments Should Spur Positivity
Sheraz Mian's picture

The markets felt comfortable with the dovish reassurance that came out of the Fed meeting, with the ‘considerable time’ phrase in the statement telling investors that the FOMC was in no hurry to start raising rates in the spring — the feared timeline for a quicker rate hiking process.


PBoC Joins Other Major Central Banks With Unconventional Monetary Policy Action
Sober Look's picture

Softer than expected economic growth in China (see discussion) has finally spurred the PBoC into action. However, rather than undertaking asset purchases that would inject reserves into the overall banking system, the PBoC forced liquidity directly into state-owned banks.


Dow Theory: Yellow Flags or Green Light?
Chris Ciovacco's picture

Stock prices have a high correlation to economic activity and earnings. History tells us bear markets are often kicked-off by recessions. Recent economic data does not hint at an imminent recession. However, a mixed message came in a September 15 report on industrial production.


Can Gold Finally Recover?
Clif Droke's picture

Gold recently fell to its lowest level in seven-and-a-half months as the dollar rose to a 14-month high. Easing tensions in Ukraine and the Middle East also acted as a drag on gold and silver prices. Investors have been asking the obvious question...


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