Global Market Commentary, Analysis and Investments
Everyone knows that when the clock strikes midnight for Cinderella, the carriage turns back into a pumpkin, the horse into mice and the jeweled gown into rags. The spell is broken and reality returns. I keep thinking of China in this context.
One of the big questions of the year is whether China blows up or not. Hard landing or soft? When will the clock strike midnight on the Chinese? Things are slowing down, and it feels like it’s getting late.
[Read more...]The markets will be getting thin today, and will be super light tomorrow as most of the traders take some time off for the holidays. These thin markets can be volatile, as any moves are exaggerated by the lack of volume in the markets. We have lots of data hitting the markets today, which could be the spark for some real action, so it may get interesting.
[Read more...]Mike told you yesterday about how the euro (EUR) had lost over 2-cents in the overnight markets, on fears that Italy, which is a much larger economy than Greece, is the next to visit the bailout doctor. The euro went up, when it was announced that the budget vote had passed, and it went down when it was announced that Berlusconi no longer had a majority government, and then it went right back up when it was announced that Berlusconi had stepped down. But that “relief rally” didn’t last long, as everyone began to imagine what it would cost to bailout Italy…
[Read more...]Cash is still king.
Cash is king because non-cash is a commoner and a loser…it’s losing its value. An article in yesterday’s Financial Times, for example, tells that:
“US inflation expectations at lowest point in year.”
In other words, forget inflation. Forget price increases. It’s cash…cash…cash.
[Read more...]Well… Yesterday, I told you how the rumors were flying around about how the markets believed the Eurozone leaders were nearing a deal to contain the contagion debt problem in the Eurozone peripheral countries. The currencies basked in sunlight all day, that they hadn’t seen in a couple of weeks, with the euro (EUR) climbing back over 1.36, and the Aussie dollar (AUD) pushing back toward parity…
[Read more...]“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...]“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 has returned to its losing ways…in a big way. After losing 80 points during yesterday’s trading session, the Dow Jones Industrial Average has tumbled another 200 points today – setting the Blue Chip index on course for a seventh straight losing week.
The stock market was bouncing around in positive territory for most of the trading session yesterday, before cratering in the afternoon. According to the financial newswires, stocks sold off in response to an official admission from the Federal Reserve that, yes, the economy is not doing so hot.
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Uncle Sam’s Fire Sale. Minimum Investment: $1 Billion
In my investment letter, Addison Wiggin’s Apogee Advisory, we spend a great deal of time, money and resources looking for new investment ideas that our subscribers can act on independently. Sometimes what we find instead is outrage.
For example, the federal government is about to dump millions of the foreclosed homes at fire-sale prices to hedge funds and private-equity firms with government connections. If you’re an individual investor who might like to get in on the action, forget it! You’re shut out of this deal.
[Read more...]