Global Market Commentary, Analysis and Investments
“And we pray for Ireland’s financial situation…and all the people who suffer because of it.”
Priests do not usually get involved in political economics. But among the prayers for the dead, the sick, the unhappy and the incompetent at St. Patrick’s cathedral on Sunday was an entreaty to the Almighty to intervene on behalf of Irish bond yields.
[Read more...]The US stock market posted another nice gain yesterday, as the US housing market recorded another dismal decline. The Dow Jones Industrial Average, for its part, added 110 points to 12,190. But the US housing market slipped deeper into the murky depths of uncharted territory.
Purchases of existing homes fell 3.8% in May from the prior month to an annual rate of 4.81 million homes. At that pace, sales this year would drop below last year’s 13-year low of 4.91 million.
[Read more...]Yesterday, the Dow rose 109 points. Gold went up $4. The 10-year US note is still trading below 3% yield and oil is still below $95.
So, what’s new? The markets seem still to be wondering…waiting…watching to see what happens – just as we are.
The Greek premier won a confidence vote in parliament. That seemed to give investors some confidence. The idea is that if the Greeks can act like they know what they’re doing, the rest of Europe can give them some more money.
[Read more...]It is still unclear which way the market is going. If only they made it easier for us!
But yesterday, the Dow took a 279-point hit. Oil lost $2, closing at $100. Gold rose $6.
And look at this… The yield on the 10-year note sank below 3%. Go figure. Inflation is at 5%…and people still lend the feds money for ten years at only 3%.
[Read more...]As you know, we’ve been wondering about the exhaustion of the Industrial Revolution innovation…and the bankruptcy of the Social Welfare state as a result.
We take for granted that a healthy economy ‘grows.’ Our governments depend on it to pay the bills. Our investments depend on it too; we buy investments that we hope will become more valuable as sales and profits grow along with the economy. But what if all of our assumptions about what is ‘normal’ are wrong? What if the growth spurt we have known for the last 300 years was the exception, not the rule? And what if it were now coming to an end?
[Read more...]Stocks went up yesterday. They’ve gone up so far, for so long we almost wish we had bought some.
But wait… Look at the stock market in terms of gold. Stocks have lost more than 75% of their value over the last 10 years – and they’re still going down.
Yesterday, gold went up again. So did oil. The sell-off we’ve been expecting is still in the future. But a sell-off is coming. Because this economy is still in a Great Correction; much remains to be corrected.
[Read more...]We can barely keep up.
One report tells us things are getting better. The next tells us that they are getting worse.
Last week, for example, we thought we might finally be seeing the sell-off we’ve been waiting for. But yesterday, the Dow rose. Gold rose. And oil rose. Gold’s back over $1,500…and oil is back over $100.
[Read more...]Buenos Aires is beautiful. We have been blessed with good weather.
The city is booming, too. Strong agricultural prices have done what they always do in Argentina – they’ve set off a boom.
“Property prices are up about 30% over the last 3 years,” says our BA-based colleague, Rob Marstrand. “But this is such a funny place. I love living here, because you see everything. If not in the present, certainly in the past…or the future. Booms, busts, corruption, inflation – everything.
[Read more...]Copyright © 2012 · Church Theme on Genesis Framework · WordPress · Log in
A View of the Long-Term Trends in the Housing Market
“And they shall grind the face of the poor…” — Isaiah
The markets were closed yesterday. Which was a good thing. The lights were out in Congress. Economists went to barbecues. Central bankers stayed home with their families. And investors didn’t bother to check their blackberries to find the latest prices.
[Read more...]