June’s PPI rose by 0.5%, more than the forecasted 0.3% gain and the largest increase since May 2015. April prices rose by 0.4%. For the 12 months prices are up 0.3%, the biggest year to year gain since December 2014....
Time magazine wrote yesterday that two thirds of society is financially illiterate, a statistic that FINRA commented as “disturbing” and requires more investor education. Gallup writes about 51% of society is involved in the markets, down from around 62% in 2000....
What will second quarter profits suggest? As noted yesterday results are expected to decline by 5.7%, the fifth consecutive quarter drop and the longest decline since 2009. The post Brexit rally is the result of promised additional central bank stimulus, not from increased corporate cashflows...
June’s labor report has added to the “unusual uncertainty” environment facing the markets. The report was the inverse of May’s broad based unexpected weakness…unexpected broad based strength....
Today June’s employment report is released. The report needs to show a rebound in job creation, higher wage growth and an increase in the labor participation rate (LPR). In other words the report has to be the inverse of May’s dismal report that universally changed...
Monetary velocity or the turnover of money is at record lows, partially the result of massive excess bank reserves via central bank stimulus. Will velocity accelerate serving as a major catalyst for growth?...
The Treasury rally is continuing as the yields on both the 10 and 30 year benchmarks fell to unprecedented levels. Treasuries have posted their best six month return since 1995 according to Bloomberg. Bloomberg also writes there is a growing pool of sovereign debt with...
A lot of the developed world has negative interest rates…a record $11.7 trillion in bonds according to the Financial Times. To put this amount into perspective, the total amount of bonds yielding over 2% is $2 trillion....
What gives? It was almost universally believed Brexit would usher in something worse than September 2008. While I must write no one knows the ultimate outcome and bad stuff may still happen, that is point that no one knows the outcome of Brexit....
Equites have retraced the majority of their Brexit loss. In my view the swift decline and subsequent recovery is the result of algorithmic trading, trading based upon the cross correlation of weighted variables. It is not investing. As noted many times algorithmic trading now accounts...