Bernanke’s Bubble in Stocks and Bonds
Summary Six years after the height of the financial crisis, we may be living in one of the most prolific financial bubbles in recent history. Under Dr. Bernanke’s guidance the US Federal Reserve...
View ArticleHas gold finally bottomed?
Let me start by saying I think it’s hard for anyone to call a bottom. Many experts do, and often they do so with the guidance of charts, fundamental analysis and other informed speculation. I am no...
View ArticleThe crude contagion could cause chaos, crash
On the heels of another massive sell off in crude oil, the US stock market woke up from its slumber. Instead of the discount in crude oil being priced in as a stimulus, it was seen (perhaps more...
View ArticleHigher stock market volatility may be persistent in 2015
A recurring theme in the bull market rally since 2012 has been minimal volatility. The days of enormous whipsaws in price were seemingly behind us until late 2014. The mood of the market has...
View ArticleCopper’s crash confirms global economic rout
Copper, the commodity often hailed as a prognosticator of future economic trends, is tumbling 8% today, after shedding more than 4% yesterday. Prices have not seen these levels in over 5 years. The...
View ArticleFreeport stock in free fall
Is this the first of many? Copper claims a casualty with Freeport McMoran stock collapsing down over 13%.
View ArticleQuick thoughts on 2015
This is likely going to be a year of reckoning for overvalued equities and corporate bonds. The credit markets have already begun their contraction, but equities hold on to the promise of earnings...
View ArticleWhat’s Yelp’s review service worth to investors?
Yelp illustrates just another social media bubble reverting to the mean. The premise of this company is that it unites people with great local businesses. And maybe that actually happens on occasion....
View ArticleCrude head fake means lower prices ahead likely
Crude oil has had quite a slide since July of 2014. Recently it appeared as though prices may be stabilizing, but recent price action may suggest that what seemed to be a double bottom may actually...
View ArticleUS dollar index rally stalling, long term trend still down
With all of the fervor over the US dollar index rallying close to 100, a reality check is in order. According to financial media reports the Euro is collapsing, gold is a barbarous relic that’s lust...
View ArticleUS stock market propelled by QE, buybacks and margin debt since 2009
The US stock market has enjoyed a spectacular rally from its lows of 666 on the S&P 500 in March, 2009. Since then the market has surged higher, surpassing 2,100 on that same index. Stocks are...
View ArticleQuantitative deflation? Central planning gone awry.
In what may be a surprise to many, quantitative easing appears to be helping to engender an atmosphere of commodity deflation. Can printing money cause prices to drop? The creation of trillions of...
View ArticleUS stocks reverse gains to close in red
Reversals lower from a morning that began green often portend to more selling pressure in the coming days. Today was such a day in the US stock market. Prices opened strongly higher and closed...
View ArticleNikkei gives back most of yesterday’s gains
Japan’s markets are a basket case. There is simply no other way to say it. Yesterday the Nikkei was up about 1300 points, now it’s down over 750. If there was ever a case study in volatility, this...
View ArticleUS stock rally ends with a whimper
Stocks traded higher earlier today, only to give back half of those gains in the afternoon, when institutional traders tend to move markets. Crude oil surged higher on what appeared to be short...
View ArticleApple allure all but gone
For years, with seldom exception, AAPL has enjoyed premier status as a stock. Hedge funds flocked to it. Large investors gobbled up shares. Even retail investors went long. But something has changed....
View ArticleGold continues tumble without outside catalyst
Producer prices were flat as was the US dollar index, but that didn’t stop a determined seller from pushing gold prices down this morning. What is driving the selling pressure? Most traders are paid to...
View ArticleReaching escape M2 velocity
Velocity of money is the measure of the speed in which money is changing hands. Higher levels of velocity indicate more economic activity and may also indicate more confidence to spend money in to the...
View ArticleMarkets mixed ahead of Fed
A little up, a little down. No real certainty to go around. Things are going to be quiet until the big decision day. Economists and market mavens can’t decide whether the Fed will engage in more QE,...
View ArticleWhat happens today may set the tone for Q4
It’s a conundrum for the powers that be. Shall they raise, sit tight or provide additional accommodation? The answer to this elusive question will be broadcasted live at about 2pm, and possibly leaked...
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