For once, I find myself in agreement with a mainstream article published over at Bloomberg. Notable Fed supporters without fail, this one maybe represents a change in tone. Perhaps the cheerleaders are feeling the heat and are seeking Jay Powell’s exit for him? Whatever the case, there’s truth to what’s written if only because interest rates haven’t been rising based [...]
Are the industrial commodities starting to get a whiff of demand side rejection? Short run trends suggest that this could be the case. From copper to iron and the highest (formerly) of the high flyers, aluminum, this particular group has been exhibiting a rather synchronized setback going back to the end of March, start of April.This despite supply bottlenecks and [...]
The bond market is allegedly populated by the “smart” set, whereas those trading equities derided as the “dumb” money (not without some truth). I often wonder if it’s either/or. The fixed income system just went through this scarcely three years ago, yet all signs and evidence point to another repeat. So, how smart can Eurobond agents really be if they’ve [...]
This is basically a rhetorical question drawn from a generally rhetorical exercise. We’ll never know for sure, this is about China, after all. Transparency is a Western obsession and a curse for the committed Communists. Particularly when the Party of “Science” starts to lose control of the situation when such a possibility has been treated as pure blasphemy.Did the Chinese [...]
Real interest rates have turned positive for the first time in 2 years. Alhambra CEO Joe Calhoun describes two big implications for investors. <iframe width="560" height="315" src="https://www.youtube.com/embed/5fhSGIWC4TA" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
Something very important happened last week. No, it had nothing to do with the stock market, at least not directly. There was a lot of volatility in stocks last week but in the end, the S&P 500 was down a mere 21 basis points (0.21%). Yes, growth stocks continued their march toward reality with the NASDAQ 100 down 1.25% but [...]
The US$ continues on its rampage, particularly zeroed in on China for simple if misunderstood reasons (that have nothing to do with “devaluation”). What about the rest of the marketplace, the other stuff which identifies the eurodollar’s various cycles? You know about T-bills, which, yet again today, are more like what the dollar is suggesting. Other than those, what’s the [...]
It appears as if most reactions to today’s April 2022 payroll were quite positive, maybe enthusiastic when they should not have been. Though the Establishment Survey - the CES headline number most people pay attention to - gained 428,000 over March’s tally, it was the “other” one which crashed down like last week’s negative GDP thud.From the CES view, you [...]
As a preface to this update ostensibly on Europe, it’s all really about Euro$ #5 sadly rounding into form. In this first part, I’m going to have resurrect the quotation marks surrounding the term “rate hikes”, or bring back RHINO (rate hikes in name only) given what’s going on in Treasury bills.Not rate hikes, or enough of them. Our dead [...]
Cue up the old VHS tapes of Bill Clinton. The former President was renowned for displaying, anyway, great empathy. He famously said in October 1992, weeks before the election that would bring him to the White House, “I feel your pain.”What pain? As Clinton’s chief political advisor later clarified, “it’s the economy stupid.”Jay Powell is no retail politician in near [...]
Stay In Touch