Archives for July 2015

Rude awakening for those who ignored the energy markets’ warning signs

  Rude awakening for those who ignored the energy markets' warning signs Courtesy of Sober Look Back in February (see post) numerous equity investors refused to believe that a crude oil recovery is likely to be unsustainable. Many viewed this as a buying opportunity – just as they did in 2011 when such "bottom fishing" strategy worked. […]

Key Sector Threatening Material Breakdown

  Key Sector Threatening Material Breakdown Courtesy of Dana Lyons   We take a break from the regularly scheduled poor breadth programming to bring you a chart of a sector…that just so happens to be one of the main contributors to the poor breadth phenomenon. After threatening for months last summer to break out above […]

Greek Stock Market Reopens (sort of); Math Perspective on the “Bailout”

Courtesy of Mish. The Greek news of the day is Greek Stock Market to Reopen, With Restrictions. Restrictions People cannot draw on their Greek bank accounts to buy shares People can only buy shares with existing brokerage account cash I supposed people could transfer cash from elsewhere into stocks but no one in their right […]

Rabbit-Hole Math: Chicago Proposes Bonds that Make No Periodic Payments; When Does Stupidity Stop?

Courtesy of Mish. Chicago Eyes Bonds that Delay Repayments Chicago Mayor Rahm Emanuel has his eyes on raising money via Capital Appreciation Bonds. CABs saddle taxpayers with higher costs because they delay interest and principle payments until a final lump-sum payment at the end. CABs have fallen out of favor because of risk. Some cities […]

“There’s A Bubble In Pessimism Worldwide, Come On, You Read Zero Hedge!”

If you read Zero Hedge, there's your proof that there is a bubble in pessimism. And if that doesn't make sense to you, read the following article, but it probably won't help. "There's A Bubble In Pessimism Worldwide, Come On, You Read Zero Hedge!" Courtesy of ZeroHedge.  GFI's John Spallanzani came on CNBC today and decided to […]

QE Fails In Japan: Inflation Nonexistent, Consumer Spending Drops, More Ease Coming

Courtesy of John Rubino. After nearly three decades of stagnation, Japan in 2013 went all-in, ordering its central bank, the Bank of Japan, to buy pretty much every bond on the market with newly-created yen. The BoJ’s balance sheet — a rough proxy for the amount of money it has created and dumped into the […]

Commodities Are Screaming Trouble But the Fed Isn’t Listening

Courtesy of Pam Martens. SPDR S&P Metals & Mining Exchange Traded Fund (Red), Freeport-McMoRan (Blue), and BHP Billiton (Orange) Charts for Past Year   By Pam Martens and Russ Martens: July 31, 2015  The commodities slump has accelerated this past month with gold now trading at five-year lows and the U.S. crude benchmark, West Texas […]

IMF Reiterates Greece Disqualified for Bailout, Participation Depends on Debt Relief and Reforms

Courtesy of Mish. Once again the IMF is back in the news in regards to Greece. The IMF staff told the board of directors Greece Disqualified from New IMF Program. Yet, Germany insists IMF be a part of the program. The reason for the latter is Germany will have to pony up lots more money […]

What happens to stocks after nothing happens to stocks?

Joshua points out that S&P action this flat, as it's been from January through July, is actually quite rare. So what's next? What happens to stocks after nothing happens to stocks?  Courtesy of Joshua M Brown, The Reformed Broker My latest piece for Fortune Magazine just went live today. In it, I look at the consequences for […]

Fed To Markets: You’re STILL Too Easy To Fool!

Courtesy of John Rubino. These days no matter what the Federal Reserve actually says, the markets respond like dogs sensing a piece of bacon coming their way. This is so for several reasons: 1) The world is vastly overleveraged, which terrifies investors and traders with even a modest historical perspective. The resulting insecurity makes them […]

Which Will It Be: United States of Europe OR United States of Germany?

Courtesy of Mish. Socialists Seek to Outvote Germany In the wake of the near-Grexit, France and Italy seek more powers for the European Commission (EC). And both countries want another parliament with more power. Their unstated goal is to create a United States of Europe where socialists would outvote the Germans. Germany Seeks to Prevent […]

7 ‘Saves’ In 7 Months: A Market Going Nowhere Fast

Courtesy of Charles Hugh-Smith Of Two Minds What do we make of a stock market that's been "saved" seven times in a mere seven months? Saved from what, you ask? Saved from rolling over, of course; after six years of upside, the current uptrend is getting long in tooth, and evidence of global recession is mounting. […]

GDP Bounce: Disappointing Mixed Bag of Expectations and Revisions; Where to From Here?

Courtesy of Mish. This morning, the BEA reported Second Quarter GDP was 2.3%. 2.3% was at the low end of the Consensus Range of 1.9% to 3.5%. On the plus side, first quarter was revised way higher. Revisions First quarter 2015 revised up from -0.2% to +0.6% 2013 GDP revised lower from 2.2% to 1.5% […]

Fed To Markets: You’re STILL Too Easy To Fool!

Courtesy of John Rubino. These days no matter what the Federal Reserve actually says, the markets respond like dogs sensing a piece of bacon coming their way. This is so for several reasons: 1) The world is vastly overleveraged, which terrifies investors and traders with even a modest historical perspective. The resulting insecurity makes them […]

News You Can Use From Phil’s Stock World

  Financial Markets and Economy Here's How Much the Strong Dollar Hurts American Companies (Bloomberg) American companies had a rough start to 2015 as they watched profits from overseas subsidiaries slide. Exactly how much blame should we assign to the currency markets? Two economists at the Federal Reserve have an idea.  U.S. corporate profits fell about 1.4 […]

Police State “Ministry of Truth” Hits Spain; Man Fined for Calling Police “Slackers” on Facebook

Courtesy of Mish. On July 1, the Spanish Government went to "Full Police State", with enactment of law forbidding dissent and unauthorized photos of law enforcement. Spain's officially a police state now. On July 1st, its much-protested "gag" law went into effect, instantly making criminals of those protesting the new law. Among the many new […]

Peter Van Buren, Washington and Tehran Come in From the Cold

  Tomgram: Peter Van Buren, Washington and Tehran Come in From the Cold Intro by Tom at TomDispatch Every election needs an organizing catchphrase and that goes doubly for the Republican presidential race, with 16 candidates having entered the fray and more on the way. I think I have the perfect one for the moment: “You’ve been Trumped!” After all, […]

Mark Ames Interviews Yves Smith about Greece

This article will only be available to non-Pando subscribers for 48 hours. Mark Ames of Pando Interviews Your Humble Blogger on Greece By Yves Smith of Naked Capitalism I hope you’ll enjoy this interview with Mark Ames: Naked Capitalism: “We are in the business of making trouble.” It’s unlocked only for the next 48 hours, so please […]

“Selfie” Fashion Trends: Cheap Dresses and “Rentabag”; Mish Handbag Tips

Courtesy of Mish. Impact of the "Selfie" Are you into Facebook, Instagrams, and "Selfies" (taking lots of pictures of yourself and sharing them instantly)? I'm not but, but in my travels I see lots of it. The popularity of sending "selfies" has even influenced retail sales and women's fashion. After all, one cannot be seen […]

The World Gets Serious About Climate Change

Courtesy of Joshua M Brown Jeremy Grantham’s latest note for GMO tackles some of his pet issues – from commodity demand to climate change – and the conclusions he reaches are both dour and slightly hopeful at the same time. For the uninitiated, Grantham is the real deal on these topics, having gotten himself arrested at […]

Currency Devaluation: The Crushing Vice Of Price

Courtesy of Charles Hugh-Smith of Of Two Minds When stagnation grabs exporting nations by the throat, the universal solution offered is devalue your currency to boost exports. As a currency loses purchasing power relative to the currencies of trading partners, exported goods and services become cheaper to those buying the products with competing currencies. For example, […]

Fed Sheds No Light, Plays Charades with Media; Tiptoe Balancing Act

Courtesy of Mish. Fed Says Little, Sheds No Light If the Fed had a clue as to what it will do in September, it likely would have said so. Instead, it reiterated the same hash we have been hearing for years. Here is the complete text of today's FOMC Press Release. Information received since the […]

Meryl Witmer, Michael Mauboussin, Bruce Greenwald: What Makes Stocks Rise

By Jacob Wolinsky at ValueWalk. 6 Great Investors Explain What Makes Stocks Rise via Barron's Michael Mauboussin, Managing director, Global Financial Strategies, Credit Suisse Group AG (ADR) (NYSE:CS): Capital allocation is especially relevant today, said Mauboussin, because “return on invested capital is high, growth is modest, and corporate balance sheets in the U.S. have substantial cash.” […]

Top Factors Undermining Any Oil Price Recovery

Courtesy of Alexis Arthur of OilPrice.com Global oil prices have returned to a state of flux. This is hardly news to any who follow the oil markets closely and yet prices continue to drive international headlines. While oil prices are notoriously difficult to predict, it has failed to deter the speculators. There are those warning that the […]