Overbought?
Yesterday, I wrote “Some think this is a secular bull – a view I am not discussing in this post. Others see this as a cyclical bull-market a.k.a bear market rally I would put Jeremy Grantham in this category. I would also…
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Why the personal consumption data is important to the stock market
The data for personal consumption came out yesterday. However, I have not had a chance to look at the data and write a post until now. What I see right now is not good for a sustainable recovery. Let me tell you why and how this could…
Links: 2009-06-02
Eerie Parallels Between Soviet Planned Economy and American Capitalism - Marshall Auerback
Marshall writes over at the great new blog New Deal 2.0 that he does see some bad parallels between the U.S. and its capitalist system today and…
Central banks will face a Scylla and Charybdis flation challenge for years
Nearly a month ago, back on May 5th, I highlighted some testimony by Federal Reserve Chairman Ben Bernanke before congress in a post labelled, “Bernanke expects recovery later this year". In his testimony, Bernanke used the phrase…
Kasriel: ‘greater risk for the global economy…is inflation’
So we can put a check by Paul Kasriel’s name for inflationistas because he has come out today with a report saying he believes it is inflation over the medium term which is the greatest risk to the economy. I will not keep you in…
ISM Manufacturing Index: New orders growing
The Institute for Supply Management released its monthly manufacturing index. The data shows that the manufacturing sector is still contracting with the headline number rising to 42.8 in May, up from 40.1 in April. This number was ahead of…
Swiss Franc at Dollar parity?
Dollar bears are getting their way in the currency markets right now. While most eyes are peeled on Sterling (up 3 big figures since Friday) and the Euro, all currencies are rising against the Dollar (including the Commodity Dollar Complex…
Market manipulation, short-covering rallies and cyclical bulls
There has been a lot of chatter in the markets about why U.S. equities continue to rally. Three distinct viewpoints have surfaced, two of which are bearish and one which is bullish. Let me share those theories with you.
1. Market…
Rosenberg: ‘Asia Revival May Be For Real’
David Rosenberg is out today with a bullish Asia commentary. In today’s “Breakfast with Dave” comments, he says: Asia Revival May Be For Real: Unless the data are lying, we are seeing spreading strength across the continent. This…
Dollar weakness continues
As I write this, the U.S. dollar has fallen to new 8-month lows against the British Pound and oil. Sterling is up over 2 big figures to 1.6371 while oil (WTI crude front month contract) has marched up near $68 a barrel. Clearly the sell…