Category Archives: Featured articles

The Week That Was: June 17th – June 21st 2013, from Zero Hedge

Stock-market-bull-bear_0 (1) Succinctly summarizing the positive and negative news, data, and market events of the week... Positives June FOMC says no taper quite yet, keep buying Fed & bulls claim employment ‘recovery’, but here are the facts Philly Fed posts huge beat in June, coming in at a 12.5 print CME hikes gold margins by 25%, that’ll teach those evil ZH’ers Don’t sweat it, just BTFD: a visual Another visual: Assume no fed, or said otherwise by some peeps, growth accelerating Fed

MAULDIN: Regulations And Socialism Are Crushing The French Economy, And It’s Going To Get Worse

Foudroyee The France that I see as I look out from the bullet train today is far different from the France I see when I survey the economic data. Going from Marseilles to Paris, the countryside is magnificent. The farms are laid out as if by a landscape artist – this is not the hurly-burly no-nonsense look of the Texas landscape. The mountains and forests that we glide through are glorious. It is a weekend of special music all over France, and last night in Marseilles the stages were alive and the crowds

China red flags, from Zero Hedge

flag_china  China 7-day repo +374bps to 12%! China Flash PMI 48.2 (49.1 exp) - lowest in 9 months; worst 3-month plunge since Feb 2011. Via Market News International: HSBC chief China economist Qu Hongbin on June flash PMI (48.3 vs 49.2): "The HSBC China Flash Manufacturing PMI dropped to a nine-month low of 48.3 in June, following on the sequential reduction in both production and demand. Manufacturing sectors are weighed down by deteriorating external demand, moderating domestic demand

ALBERT EDWARDS: ‘One Of The Biggest Economic Bubbles Is About To Go Into The Minsky Masher’ ,by Mamta Badkar

sydney-opera-house-dust-storm Australia's GDP growth expanded merely 0.6% in the first quarter. This was after a 0.6% rise in Q4 2012. Meanwhile, there are a lot of people shorting the Australian dollar. Minus export growth however, Societe Generale's Albert Edwards writes that gross national expenditure (GNE) has fallen for two straight quarters. "One of the biggest economic bubbles in history is now about to go into the Minsky masher," writes Edwards. This refers to periods of speculation that lead to crisis, and was

ALBERT EDWARDS: Everyone’s Worst Fears For The Stock Market And Economy Have Been Confirmed, from Sam Ro

Super-bear-warns-on-US-China-risks-6443141 In the last month, the economy gave us some particularly worrisome economic data. Societe Generale's Albert Edwards flags two data points: Q1 corporate profit growth, which unexpectedly turned negative, and the May ISM manufacturing report, which is now signaling a contraction in the sector. "History tells us that this is a warning sign we ignore at our peril," he wrote. Edwards notes that the ISM numbers have been on the same path as they were going into the last recession. But he

Evaluating 3 Bullish Arguments, by Lance Roberts

S&P-500-PE-Reversions-052813 These are indeed interesting times that we live in.  As the markets elevate higher on the back of the global central bank interventions it is important to keep in context the historical tendencies of the markets over time.  It is not uncommon at major market peaks to see"irrational exuberance" begin to grip the markets.  In March of 2000, as foreign capital inflows drove markets higher, Jim Cramer came out with his 10 must own stocks for the next decade. By the end of 2002, of the few that were

Japan Is On The Brink Of Disaster, by John Mauldin

Japanese_10Year_Continuous_Futures_Contracts The Mother Of All Painted-In Corners Alice laughed: "There's no use trying," she said; "one can't believe impossible things." "I daresay you haven't had much practice," said the Queen. "When I was younger, I always did it for half an hour a day. Why, sometimes I've believed as many as six impossible things before breakfast." – Alice in Wonderland, Lewis Carroll I wrote several years ago that Japan is a bug in search of a windshield. And in January I wrote that 2013 is the Year of the

Japan Has Its Own Reasons For Crashing, by James Saft (Reuters)

shinzo_abe_qe_to_infinity_n_beyond (Reuters) - Spiking interest rates in Japan threaten to undermine, and possibly end, the recovery being engendered by Abenomics. That could reverse gains not only in Tokyo stocks, but in stock markets world-wide which have benefited from Japanese liquidity. While a rebound in activity has allowed the Bank of Japan to upgrade its assessment of conditions for a fifth straight month, bond yields have risen sharply in extremely volatile conditions. Yields on 10-year Japanese government bonds have

European Banks and Why the Deleveraging Has Only Just Begun, By Martin T., Macronomics

mt2 “Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.” – Winston Churchill Figure 1 was extracted from Bank of America’s note “Banking on the Banks” from the 16th of May, clearly illustrates why the deleveraging has only just started in Europe. “Meanwhile, Europe continues to lag the improvements seen in the US economy and markets. Quite simply, Europe’s economy struggles with too many banks, too much debt and too little

5 Questions That Every Market Bull Should Answer, from Lance Roberts

PCE-SP500-051513 Another excellent piece from Lance Roberts. A must read! There have been a litany of articles written recently discussing how the stock market is set for a continued bull rally.  The are some primary points that are common threads among each of these articles which are that interest rates are low, corporate profitability is high and the Fed's monetary programs continue to put a floor under stocks.  The problem is that while I do not disagree with any of those points - they are all artificially