Phil discusses Bill Ackman’s latest market gaming tactic.
The broad indexes are trading near highs. Many stocks are over-priced as judged by typical valuation metrics. However, the chart of the S&P 500 ETF (SPY) carving out major advances for most of the last six years does not tell the whole story.
S&P Chart from mid-2010:
Progress stalled about [Continue Reading]
Courtesy of Joshua M Brown
Here’s a great graphic from J.P. Morgan’s fantastic Q3 [Continue Reading]
Financial Markets and Economy
A bounce in crude oil and other commodity prices Tuesday halted a plunge in currencies of countries linked to natural-resource exports. The respite will be short-lived, [Continue Reading]
Courtesy of James Kunstler
That the snarkier circles of political commentary thrill to the elephantine bellowings of Donald J. Trump only shows the pathetic limitations of the snarkists. They enjoy Trump’s filterless mouth, his harsh goadings of the other presidential wannabes, and his [Continue Reading]
Courtesy of David Stockman of Contra Corner
If you want a cogent metaphor for the central bank enabled crack-up boom now underway on a global basis, look no further than today’s scheduled chapter 11 filling of met coal supplier Alpha Natural Resources (ANRZ). After becoming a public company in 2005, its [Continue Reading]
Courtesy of Mish.
Dissatisfied with alleged concessions to Russia, the leader of the Right Sector battalion, Dmytro Yarosh, seeks a nationwide no-confidence referendum in President Petro Poroshenko.
The Right Sector is an illegal battalion that Kiev tolerates because its fighters are well-trained, well-equipped, and willing to take on the separatists.
There [Continue Reading]
Courtesy of John Rubino.
As boxers like to say, it’s the punch you don’t see that knocks you out.
In a world where a growing part of the financial system is hidden from view and excluded from official statistics, those are words to remember.
A couple of examples from the 2008-2009 [Continue Reading]
By John Mauldin
“The one thing I know for sure about China is, I will never know China. It's too big, too old, too diverse, too deep. There's simply not enough time.”
– Anthony Bourdain, [Continue Reading]
Courtesy of Charles Hugh-Smith, Of Two Minds
Here is the conventional narrative about rents and housing valuations:
1. Rents have soared because people can't afford to buy a house and have to rent
2. Based on soaring rents, housing is fairly valued
In other words, rents and housing are tautological: rents are [Continue Reading]
Courtesy of Lee Adler at Wall Street Examiner
The headline, fictional, seasonally adjusted (SA) number of initial unemployment claims for last week came in at 267,000. The Wall Street economist crowd consensus guess close to the mark this week, at 272,000.
We focus on the trend of the actual data, instead of the seasonally [Continue Reading]