Investing and Trading News, with a Contrarian, Sarcastic Twist!
This headline is starting to become a recurring theme. US consumer credit is in freefall – because, as we all know, the American consumer is FLAT BROKE! BusinessWeek reports: Consumer borrowing in the U.S. dropped in May more than forecast, a sign Americans are less willing to take on debt without an improvement in the […]
Remember a few weeks ago, when the Baltic Dry Index was on the ropes? Well, it’s off the ropes – and in complete freefall. Support has NOT held for the BDI, a favorite leading indicator of many investors. And one, might I add, that has performed quite well since the equity markets topped in 2007 […]
Last week, we picked up a story courtesy of Bespoke Investments that showed just 4% of S&P 500 stocks were above their 50-day moving average – a level not even seen during the March 2009 lows! So we thought a stock market bounce might be on tap – and sure enough, this week we got […]
For a fresh, different perspective on the markets (from my usual “Doom and Gloom”) – here is some guest commentary from Phil at Phil’s Stock World. Phil does a very good job at looking at the markets from a fundamental analysis standpoint (and while he rags on the TA crowd in the 1st paragraph, he […]
Stocks entered this week in an extremely oversold condition, with overwhelmingly bearish sentiment amongst investors. Just 4% of stocks in the S&P 500 sat above their 50-day moving average heading into the 4th of July holiday – a number even more dismal than the March 2009 lows! Today we got a sharp rally in the […]
Municipal bond yields continue to “break out” as investors are (finally) coming to the realization that local governments, which lack their own printing presses, may have problems making good on their outstanding debt. The Financial Times reports: The sharpest swings in the muni market have been seen in the $100bn so-called “Build America bonds” – […]
Last week, the S&P 500 collapsed through it’s 1040 support line, which had been tested twice before, indicating that there might be major PAIN ahead for stocks. This morning, stocks opened UP – but found resistance once again at 1040…this time, to the ceiling side. Before the weekend holiday, Todd Harrison of Minyanville presciently mused […]
Here’s an interesting debt deflation academic paper that our deflationist pal Carson sent along. It’s written by Steve Keen from University of Western Sydney. In the paper, Keen compares the debt deflation environment of the 1930’s with today. Abstract: My 1995 paper on modeling Minsky’s Financial Instability Hypothesis concluded with thestatement that its “chaotic dynamics […]
Courtesy of Pragmatic Capitalism: Is there a debt problem in the United States? You better believe it. But it’s not debt problem everyone is panicking over (the government deficit). It’s at the private sector level. This classic balance sheet recession has consumers saddled with debt. Peter Cecchini, chief strategist at BGC Financial LP says there […]
The Sacramento Business Journal reports: California State Fair officials hit the books, cut prices and revamped the fair’s calendar in an attempt to increase dwindling attendance. So far, the measures appear to be working, reports the business journal. This is, of course, yet another example of deflation. And in case you missed it, on Friday […]
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