From the category archives:
I woke up this morning and checked my charts, as always. I have been expecting a downturn in risk appetite to manifest in crumbling asset prices, at least until correction happened.
I’ve been getting a bit discouraged with this call, as most everything has stayed relatively buoyant. But today after looking at the commodities I think [...]
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From the classic, Dow Theory, by Robert Rhea, 1932: :
The movement of both the railroad and industrial stock averages should always be considered together. The movement of one price average must be confirmed by the other before reliable inferences may be drawn. Conclusions based upon the movement of one average, unconfirmed by the other, are almost [...]
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One adage that seems to work as much as anything else, and why it is an adage I guess, is “buy the rumor and sell the news.” I won’t bore you with the behavioral aspects of why this works, I think you know. We are seeing it a bit this morning on display on news [...]
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A theme being discussed more and more is the idea China is going to save us from the monetary mess in which we are now firmly ensconced. But based on my understanding, it will likely be several decades, if ever, before the Chinese currency seriously challenges the US dollar for global reserve currency status.
USD- Chinese [...]
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This is a very entertaining but also very serious and real synopsis of the ongoing Greek saga. Nigel Farage is certain not out of character, as he is usually speaking his mind very loudly about the circus act that is the eurozone and the Sovereign debt crisis.
Enjoy.
http://youtu.be/W8Ayb8P1LbU
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In my Money and Markets column on Saturday I will discuss the massive debt problems we face and describe why this may lead to below-capacity growth in the global economy for years to come. The problem with below-capacity growth: it doesn’t allow countries to garner a margin of safety reserves to help weather an external [...]
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Key News
* BOJ easing likely if Tokyo intervenes in FX (Reuters)
* U.S. Averts Default as Obama Signs Bill (WSJ)
* Italian bonds under fire on gobal economic worries (Reuters)
* U.S. Sovereign Rating Is Placed Under Review by Fitch (Bloomberg)
The Event Agenda
Afternoon Run-Down
There continues to be a risk-off theme in markets – and for good reason.
And there [...]
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Key News
* Best Currency Forecasters Say Dollar Slump Coming to an End (Bloomberg)
* EU Stress Test Data May Cause Market Instability (Bloomberg)
* Dutch FinMin: Greek Selective Default Not Ruled Out (iMarketNews)
* China’s Wen Says Inflation Top Priority; Will Watch Growth (iMarketNews)
The Event Agenda
Afternoon Run-Down
As the global markets shifted toward the European time zone this morning, [...]
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Key News
* Papandreou Confidence Vote May Decide Fate of Greece (Bloomberg)
* Reserve Bank Weighs Europe Debt in Holding Rates (Bloomberg)
* Fitch: would cut Greece to default on any voluntary debt rollover (Reuters)
* Why Germany must exit the euro (Telegraph)
The Event Agenda
Afternoon Run-Down
The euro zone crisis faces another stiff test later today, a vote of confidence [...]
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June 8, 2011
Key News
* European Central Bank risks being ‘wiped out’ by bail-outs (Telegraph)
* China official says U.S. could pursue weak dollar policy (Reuters)
* Limited default might clear way for Greek bond swap (Reuters)
* Fitch Warns U.S. on Debt Ceiling (WSJ)
The Event Agenda
Afternoon Run-Down
The broad dollar weakness of recent days began reversing today. Yesterday, Fed [...]
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