There is now the “threat of deflation” in the US according to economic adviser Stephen Moore, who says that President Trump needs a catalyst in the trade dispute with China and the Fed can cut interest rates to provide it. “I am calling for the feds to have an emergency meeting next week to announce a […]
$DIA, $SPY, $QQQ, $RUTX, $VXX US wholesale prices fell last month on a steep fall in gasoline prices suggesting that inflation will remain tame in the coming months. The Labor Department said that the producer price index, which tracks cost changes before they reach the consumer fell 0.2% in December from the prior month. The drop […]
A 2019 Bear Market Event May Trigger a DJIA Move to 40,000 $DIA, $SPY, $QQQ, $RUTX, $MTAFF, $GLGDF, $RGLD, $FNV,$WPM You may recall in January 2016, the DJIA was trading at the 16,000 mark, when Yves Lamoureux, President of macroeconomic research firm Lamoureux & Co., said DIA would top 25,000 within 3-4 years. It did not take […]
Looking at the US Home Mortgage Market $DIA, $SPY, $QQQ Last week the Dow Jones on Tuesday and Wednesday closed at all-time highs, this week it pulled back. That makes 4 new BEV Zeros in the BEV chart below in the past ten trading days, and that’s something I can’t complain about. If you compare […]
Trump Stimulus Expectations Driving US and World Economies $DIA, $SPY, $QQQ, $VXX The world economy will grow steadily over the next 2 years, meaning investors should stay invested in equities, according to Barclays Capital Plc. Barclay’s analysts presented several major themes for the next 2 years Thursday, they are: President Donald Trump and Republicans in […]
Inflation Back, Deflation Demons ‘Dead’, Growth Ahead $DIA, $SPY, $QQQ, $VXX The “Demons of Deflation” are in the dust-bin on a uptick in price pressures globally, prompting investors to seek protection in inflation-protected bonds. A year ago, it was deflation, falling prices that restrain consumer spending and economic growth that plagued investors and central banks, […]
Recession Looms, Bond Bulls Charge Ahead $DIA, $SPY, $QQQ, $VXX Bond investing has been hugely profitable with central banks like the Fed, ECB, BOE and BOJ driving debt values higher for as long as anyone can remember. And Bond Bulls can expect even more gains ahead as governments desperately try to stimulate economic growth with […]
No Empirical Measure Truly Illustrates the Reality of Being Poor Donald Trump is technically correct when he says almost 4 in 10 black American youths live in poverty. According to the official poverty measure, 36% of African-Americans under the age of 18 fell below the poverty mark in Y 2014. The problem with that statistic […]
BOJ to Boost Stimulus for Stagnant Economy Japanese Prime Minister Shinzo Abe announced plans Wednesday for more than JPY 28-T ($265-B) in economic stimulus in an effort to prop up the nation’s stagnant economy. The plan will includeJPY 13-T in “fiscal measures,” he said in excerpts of a speech broadcast by NHK public television. Mr. […]
American’s are Almost as Wealthy as Ever, it is Scary Americans are about as wealthy as they have ever been and that is worrying monetary officials. They are concerned that the growing wealth could prove unsustainable because it has outstripped the growth of the economy since the Great Recession’s storied end in Y 2009. A […]
Barron’s Gold Mining Index (BGMI): A 96 Year Study $GLD, $SLV What does “real money” mean to you? To many of my readers, I suspect real money would be gold and silver coinage backing the paper money in circulation. But to politicians and economists, it means something completely different: “A billion here, a billion there, and […]
The Fed Policy Makers are Fighting for Their Lives Something interesting happened the Friday (Quad Witching) before Brexit; trading volume exploded on a decline in the Dow Jones. In the BEV chart below I inserted the daily trading volume (mils) for the Dow Jones instead of the usual BEV values to highlight what happened. It […]
World’s Central Bankers are Fighting “the Tape” The world’s central bankers are fighting “the tape” by pumping massive amounts of liquidity into the global economic system in an effort to avert deflation. Notably, deflation is a natural force of nature during Peace Time, when globalization leads to free trade and heightens competition. During War Time, […]
