Real estate markets continued the blistering pace of new home sales in June, according to Census Bureau estimates. Year-over-year, seasonally adjusted growth was 38.1% to an annual rate of 497,000; the highest level since May 2008. On an unadjusted basis, there were 48,000 new homes sold in the US in June, up 41% Y/Y. In the wider historical context, the [...]
Just over a month ago we noted the clear exuberance in the junk bond space in the context of the growing usage of the word “bubble”. At the time, various junk or high yield indices had seen yields fall laughably below or near 5%. It was not all that long ago that short-term US bills and even some money market [...]
When even Eric Rosengren, Boston Fed President, is thinking about “tapering” you know something is a tad askew in FOMC-land. Again and again, these doves (including Charles Evans at the head of the Chicago Fed branch) had advocated the heaviest of hands of monetary intervention. QE 3 & 4 could not have been big enough for this cabal. Now in [...]
The Federal Reserve on a few separate occasions, as I noted late last week, has begun to peremptorily quash the growing use of the loaded word “bubble”. From academic papers to Fed speeches, US monetary policymakers want to make sure that investors and the public know they are watching for them though they have yet to appear. Vigilance is paired [...]
Earnings season for Q3 2012 has been underwhelming. It appears as if the macro decay of the first half of the year is settling in at the corporate level. With about 20% of the S&P 500 companies reporting earnings so far, revenue growth has actually underperformed even the re-adjusted expectations from just last month. Initial estimates of operating earnings for [...]
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