Archives for September 2015

the definition of irony

Americans are starting to do dumb things with their money?  the definition of irony Courtesy of Joshua Brown, The Reformed Broker via Business Insider, September 22nd: In a press briefing on Tuesday, Mike Wilson, chief investment officer of Morgan Stanley wealth management, said consumer behavior was starting to show signs of excess as the economic recovery reaches […]

Someone unexpected agrees with me about historical valuation metrics

  Someone unexpected agrees with me about historical valuation metrics Courtesy of Joshua M. Brown, The Reformed Broker A couple of weeks back, I dropped an atomic bomb on the idea that historical valuation across decades carries an appreciable amount of implication or signal for investors. My argument was grounded in common sense – one thing I’ve […]

The Market In Pictures – The Aging Bull

Courtesy of Lance Roberts of STA Wealth Management In January, I did a chart analysis of the markets suggesting that being overly optimistic going into 2015 could be dangerous.   "As we enter into 2015, analyst calls for a continued "bull market" advance have never been louder. There have been a litany of articles written recently discussing how […]

Coast is Clear Until 2019

  Coast is Clear Until 2019 Courtesy of Wade of Investing Caffeine The economic recovery since the Great Financial Crisis of 2008-09 has been widely interpreted as the slowest recovery since World War II. Bill McBride of Calculated Risk captures this phenomenon incredibly well in his historical job loss chart (see red line in chart below): Source: Calculated Risk […]

Self-Driving “WEpod” Shuttles Hit the Road in Europe; Autonomous Car Updates

Courtesy of Mish. This November, in the Netherlands, the WEpod six-person passenger van, will become the world’s first self-driving vehicle in regular traffic, where cars and trucks also go. The WEpod can be booked using an app which will allow passengers to reserve a seat and specify their starting points and their destinations. Vehicles are […]

Balloons in Search of Needles

  Thoughts from the Frontline: Balloons in Search of Needles By John Mauldin I love waterfalls. I’ve seen some of the world’s best, and they always have an impact. The big ones leave me awestruck at nature’s power. It was about 20 years ago that I did a boat trip on the upper Zambezi, ending […]

Dallas Fed Region Activity Bad as Expected

Courtesy of Mish. The Dallas Fed Manufacturing Survey was as bad as expected in relation to Bloomberg Econoday Consensus of -9.0. The Dallas Fed rounds out a full run of negative indications on the September factory sector with the general activity index remaining in deeply negative ground at minus 9.5. New orders are at minus […]

Ackman Loses $700 Million Instantly After Valeant Gets Drug Pricing Subpoena

Courtesy of ZeroHedge. View original post here. Yet another nail in the Biotech Bubble's coffin as Bloomberg reports Valeant receives a subpoena from House Democrats over "massive price increases." The stock is down 12 % on the news extending the collapse of the last few days and weighing very heavily on the broad Biotech index. […]

Obama: “America Has Few Economic Interests In Ukraine”… And This Very Big One

Courtesy of ZeroHedge. View original post here. As part of his UN speech seeking to restore a crumbling Pax Americana, president Obama, eager to cover up US involvement in the Ukraine presidential coup of early 2014 (who can forget Victoria Nuland "strategy" interception in which she laid out the post-coup lay of the land, while […]

The Week Begins On A Scary Note

Courtesy of John Rubino. The US markets awoke to news of several big, disturbing overseas events: Glencore implodes. Think of Swiss commodities giant Glencore as a modern version of Enron, in the sense that it owns physical assets like mines and oil wells around the world and runs perhaps the biggest commodities derivatives trading desk. […]

Who Messed With Janet Yellen’s and the Pope’s Speeches Last Week?

Courtesy of Pam Martens. Pope Francis Addresses a Joint Session of Congress on September 24, 2015 Both Fed Chair Janet Yellen and Pope Francis delivered speeches on Thursday of last week that took an odd turn of events. A section of the Pope’s official speech transcript that slammed the finance industry was gutted before the […]

Whole Lotta Bear Markets Goin’ On

Courtesy of John Rubino. The Dow and S&P 500 have fallen by around 10% since August, which in normal times would be hardly worth mentioning. But below the surface, in what used to be the market’s hottest sectors, much more serious damage is taking place. Biotech, which had an epic bull market during the era […]

Germany’s Immigration Challenge

  View image | Outside the Box: Germany’s Immigration Challenge By John Mauldin This immigration crisis in Europe is a big deal, and it’s a bigger deal for Germany than for any other European country. Germany is directly in the firing line, both geographically and in terms of how many of the migrants want […]

Playing the Chinese Trump Card

  Thoughts from the Frontline: Playing the Chinese Trump Card By John Mauldin “I know the Chinese. I’ve made a lot of money with the Chinese. I understand the Chinese mind.” – Donald Trump, 2011 Back in the olden days (pre-2000 or so), information junkies like me relied on printed newspapers, paper magazines, TV newscasts, […]

Catalan Separatist Parties Victorious, Unprecedented Voter Turnout

Courtesy of Mish. The showdown in Spain between the independence parties and Madrid is sure to heat up following today's elections. Here is a link to the Live Vote Totals. With 70% of the vote counted, the parliament totals look like this: In terms of popular vote, it appears the separatists will fall short of […]

Total Lunar Eclipse September 27-28: Where to See It, How to Photograph It

Courtesy of Mish. There is a Total Lunar Eclipse tonight visible of most of the US. You may want to watch it. The moon will likely appear strong read or orange, giving the name “blood moon”. click on table for sharper image The Penumbral phase is weak and not easily seen so you may wish […]

Greater Fools and Bigger Liars

Courtesy of The Automatic Earth. Harris&Ewing The Capitol in the snow 1917 Societies in decline have no use for visionaries – Anaïs Nin The moment we heard that John Boehner would resign, the first thing that came to mind was: the next one will be a Greater Fool and a Bigger Liar. For all of […]

US On The Ropes: China To Join Russian Military In Syria While Iraq Strikes Intel Deal With Moscow, Tehran

Courtesy of ZeroHedge. View original post here. Last Thursday, we asked if China was set to join Russia and Iran in support of the Assad regime in Syria.  Our interest was piqued when the pro-Assad Al-Masdar (citing an unnamed SAA “senior officer”), said Chinese “personnel and aerial assets” are set to arrive within weeks. To […]

Divergence Drivers and the Dollar

Courtesy of Marc To Market The main thrust of our bullish US dollar outlook is the divergence in monetary policy trajectories. We do not think the divergence has peaked and anticipate it to persist through next year and into 2017.    Since the Federal Reserve finished QE3, the divergence has been driven by easing of policy […]

Goldman Sachs: “Peak Coal” Is Here

  Goldman Sachs: “Peak Coal” Is Here Courtesy of Charles Kennedy of “Peak coal” is here. Goldman Sachs released a September 22 research note that predicted that coal will decline and never come back. “Peak coal is coming sooner than expected,” the investment bank concluded. “The industry does not require new investment given the ability […]

Paul Craig Roberts Warns “The Entire World May Go Down The Tubes Together”

Courtesy of Paul Craig Roberts writing at ZeroHedge. View original post here. Washington’s IQ follows the Fed’s interest rate – it is negative. Washington is a black hole into which all sanity is sucked out of government deliberations. Washington’s failures are everywhere visible. We can see the failures in Washington’s wars and in Washington’s approach to China and Russia. […]

How US Corporations “Cooperate” With China; Xi’s China: A Place Called Hopelessness

Courtesy of Mish. In response to Why I'm Never Going to "Two-Bit" China an anonymous reader sent links to a video on how US companies are forced to cooperate with China and an article on "Xi’s China" from the Daily Beast. Both may be a bit over the top, or not, in the eyes of […]

How Long Will Janet Yellen Last as Fed Chair? Fed Declines to Comment on Her Health, I Will

Courtesy of Mish. Fed Chair Janet Yellen’s health is in question after she could not read her prepared text in a lecture on inflation last Thursday. About 50 minutes into her speech, she paused for about 25 seconds, then repeated phrases and missed words. MarketWatch reports Yellen Stumbles Towards End of Speech at Amherstt.  Yellen […]

The Table Is Set For The Next Financial Crisis

Courtesy of Jim Quinn via The Burning Platform blog as posted at ZeroHedge (here).  The housing market peaked in 2005 and proceeded to crash over the next five years, with existing home sales falling 50%, new home sales falling 75%, and national home prices falling 30%. A funny thing happened after the peak. Wall Street banks accelerated the issuance […]