Chris Puplava's picture

Ignore the endless bottom calling in the press that is buzzing around with some financial pundits pointing to the Bear Stearns blow-up as a likely capitulation in the markets. One thing that should be abundantly clear is that Wall St. tends to err on the side of optimism.

Chris Puplava's picture

The banking sector has taken an absolute beating over the last year as residential real estate losses surge and the penalty of lax lending standards comes home to roost. The sheer vertical lift off in delinquency rates and losses is astounding. Just take a look at the following charts.

Rob Kirby's picture

When bond maven Bill Gross openly writes about it – as he did in his January Investment Outlook - it’s perhaps inappropriate to use the word “secret”.

Rob Kirby's picture

If you feed-at-the-trough of the mainstream financial outlets, seldom does a day go by that you are not confronted with conjecture about whether the Federal Reserve will raise or lower rates.

Tim W Wood CPA's picture

From a Dow theory perspective, the primary bearish trend confirmation that occurred the on November 21, 2007 remains intact. According to Dow theory, it’s the close that counts and up until March 7, 2008, the averages have both been operating within the boundaries of the previous two secondary high and low points.

Chris Puplava's picture

One exercise that Brian Pretti from ContraryInvestor.com employs that is both insightful and fun in his writings is to ask readers if they would buy or sell a chart with the description removed; two such charts are provided below.

Chris Puplava's picture

Barack Obama's campaign is running on the slogan, "Change we can believe in," which aptly describes the likely future state of the U.S. consumer. This is not an article on how the U.S. consumer is dead, but looks at the likely decline of consumption's importance in GDP using Japan as a historical guide with the focus centered on demographics and interest rates.

Tim W Wood CPA's picture

Since the rally out of the January lows began, I have heard it said on numerous occasions that the strength of the Transports somehow has bullish undertones and implies that the decline is over. The overall spirit of the comments I have been hearing has to do with the fact that the Transports have recovered more than the Industrials.

Chris Puplava's picture

The markets initially rallied off the retail sales report that came out last Wednesday as sales for January rose 0.3%, which was in stark contrast to the consensus expectations of a 0.3% decline.

Rob Kirby's picture

Folks should understand that all fiat money is loaned into existence. Thus, when fiat money is ‘created,’ explicitly, the principal sum [loan] is created out of thin-air, but the interest to be repaid is not.

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