A lot has been made of the fact that QE3 is open ended. It can go on for as long as our financial stewards deem appropriate. Many have dubbed this QE – infinity, and in the end, maybe that is what we will get as many have questioned whether QE is the right tool to [...]
The market finds itself at the intersection in time where an overbought and over bullish rally built on a poor foundation meets the deep pockets of the Federal Reserve.
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For the 4 week period from August 3, 2012 to August 31, 2012, the SP500 gained 1.13%. For the year through August 31, 2012, the SP500 is up 11.84%. From January 1, 2011, the SP500 has gained 11.85%.
The troubles in Europe are well documented. It is a union of countries but there are no fiscal ties, and without those common fiscal constraints, most experts would agree that a united Europe just won’t work. While a common fiscal purpose is the end goal, there are other cultural and social factors that will need [...]
The very erudite Dr. John Hussman is as good as a market researcher as there is, and he defines a set of market conditions that when they come together generally leads to poor equity performance. One of Hussman’s syndromes is the “overbought, over-bullish, overvalued, and rising yields syndrome.”
Here is an insightful article from Louis Woodhill, a contributor to Forbes. Woodhill looks at the Real Dow and considers why there is no prosperity for the past decade. As I have stated on several occasions, you cannot de-value your way to prosperity, yet this is the policy our economic stewards and political leaders have [...]
Here is an article from our friends at CNBC that is so distasteful that it makes you wonder what people really, really do think.
Charles Biderman of Trim Tabs Investment Research offers up as good as explanation as any as to why gold bullion dropped $100 on leap day, February 29, 2012.
I was out and about, and I was listening to CNBC on the Sirius Radio, and the panic in the air over a three quarter of a percent down day is palpable. The fellow with a British accent is in an absolute tizzy, and the stream of guests are spewing forth the usual nonsense and [...]
Readers often want to know what I am reading. Well these are two “must read” articles on bubbles.
A very concise article from the always very verbose, but insightful Peter Schiff of Euro Pacific Capital. Schiff touches on several of the issues that have crept on to my radar screen in the past several days.
There is a lot of noise out there and the wide swings in the market are reflective of that fact. There is a lot of rumor (news?) driving prices in both directions. Economic data has been weak, but why pay attention to the facts when there is always the hope that the next data point [...]