Negative interest rates and talk of helicopter money from the world's central banks has been bullish for gold. … [Read more...]
Archives for April 2016
Mortgage Applications Point Up
Mortgage applications for home purchases point toward continued recovery in the housing market. … [Read more...]
Worthy Reads: Billionaire Investor Forecasts Recession
Billionaire Investor Forecasts Recession (WSJ) Google's Socialists (Quartz) Most Americans in 15 Years say Taxes Too High (Gallup) Big Insurers Dropping Obamacare Exchanges like a Hot Rock (Politico) Monetary Reform or Trade War (WSJ) What Oil Glut? (WSJ) Kuroda Readies the Torpedoes (WSJ) … [Read more...]
GDP Growth in the Tank
The Atlanta Fed's GDPNow indicator, a forecast of GDP growth using the available economic data, shows that growth likely ground to a screeching halt in the first quarter. Whether this is the same type of statistical bias that has dragged down first quarter growth over recent years or a bona fide slowdown is not yet clear. … [Read more...]
Silver at 10-month High
With interest rates negative around the world Silver jumps to a 10 month high. Silver prices jumped to their highest levels in 10 months during trading in Asia. The price of silver rose 3 per cent to $16.73 a troy ounce, the highest level since June. It is now trading down at $16.63, writes Henry Sanderson. Silver prices rallied on the Shanghai Gold Exchange, rising as much as 4.3 per cent to 3,595 yuan per kilogram, according to Reuters. Silver prices have lagged gold this year, even though traditionally, gold rallies lead to higher silver prices. Prices started to rise at the … [Read more...]
Worthy Reads: Sell in May & Go Away
Sell in May and Go Away (CFA Institute Blogs) China Borrowing Binge Barley Lifts GDP (GaveKalCapital) Norway's War on Coal (Fortune) In Search of New Widows and Orphans (Money) How Much More Expensive is WholeFoods (MarketWatch) UBS Weber Warns Against More ECB Stimulus (WSJ) … [Read more...]
Stocks and Oil in Lockstep
Stock prices and oil prices continue to move in lockstep. … [Read more...]
Worthy Reads: Why Older People Love Facebook
Why Older People Love Facebook (NYTimes) 78 Million American Pay No Income Tax (MarketWatch) Wind Energy Economics Improving (Washington Post) Seniors the Fastest Growing Demographic on Social Media (NPR) Soda Consumption Falling at Restaurants (Washington Post) Rousseff Out in Brazil (WSJ) Junk Bonds: Handle with Care (WSJ) More on Helicopter Money (Fortune) … [Read more...]
Are you a Speculator or an Investor?
John Maynard Keynes once compared investing to picking the winner of a beauty contest. Keynes argued that to win the contest one must choose the contestant he believes is the most attractive in the opinion of others, not necessarily the contestant that is most attractive to him. Ben Graham, the father of Value investing, once said that in the short-term the stock market is a voting machine, but in the long-run it is a weighing machine. Who’s right? Keynes and Graham are both right. For traders and speculators Keynes offers the most relevant advice. In the short-run, the … [Read more...]
No End in Sight for Industrial Recession
Industrial production contracted again last month. That makes 10 out of the last 12 months down. The industrial economy is now solidly in recession territory. … [Read more...]