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The Problem with Success
Cash accounts for almost 6% of all corporate assets and the highest in sixty years. This increase is a result of a number of factors. Record profits give businesses the wherewithal. But corporations are not rewarded for the cash holdings.…
2012 an inflection point toward S&P500 margin compression
What I have been saying throughout 2011 is that margin compression is going to happen no matter what. The cuts have been made and so margins cannot grow any higher from cuts. It has to come from operating leverage that increases as a result…
2012 an inflection point toward S&P500 margin compression
What I have been saying throughout 2011 is that margin compression is going to happen no matter what. The cuts have been made and so margins cannot grow any higher from cuts. It has to come from operating leverage that increases as a result…
Euro Dragged Lower on Greece Uncertainty
The dollar looks set to begin the week higher against the majors and EMs over lack of progress in Greece. European stocks are down 0.6%, with the EuroStoxx 600 trimming its 6-month high; EZ banks down 1.3%. German manufacturing orders…
News Links 02/04/2012
Schneiderman Files Civil Fraud Lawsuit Against Three Major Banks for Use of MERS « naked capitalism New York filed a lawsuit against various units of JP Morgan, Bank of America, Wells, MERSCORP and…
Jobs data highlight huge potential for capital loss in Treasuries
I have been making a big deal about strength in the household series of employment and the trend in IUCs. These are statistical series that do not get revised out of recognition. They often tell the tale at turning points. Given that past…
El-Erian on jobs: Headline bullish but structural issues remain
Bloomberg Television has another video with PIMCO head Mohamed El-Erian, this time on the jobs number. This one number has the potential to set the tone for the short-term because it was so far ahead of consensus estimates. El-Erian…
Chart of the day: Labor force participation rate at 30-year low
The jobs data were the best we have seen in a long time and well above expectations. This and the first upward revisions to the annual revisions were a pleasant surprise. While a lot of people are in disbelief because of a present bearish…
The Unlikely Bull Market
This is not the time to be fully invested but neither is it the time to be side lined. We are in a nervous market where great opportunities present themselves at regular intervals. We recommend holding 25-50% in cash or cash like…