When it comes to the recent batch of corporate earnings releases, some investors might be cheering. But if you look a bit closer at the results, you will notice the underlying fundamentals aren’t as strong as they first appear. One thing to remember: in the equities market, it’s all about expectations. A company might report…
As the S&P 500 continues to push to one new high after the next, the bullish arguments of valuation have quietly given way to “it’s all about the Fed.” The biggest angst that weighs on professional, and retail investors alike, are not deteriorating economic strength, weak revenue growth or concerns over the next political drama – but…
By George Leong, B.Comm. The easy money will continue to be pumped into the economy by the Federal Reserve, but the difference, I think, will be that the soft tone will have less of an impact on the stock market than in the previous years. As was widely expected and to no one’s surprise, the Federal…
By Filipe R. Costa Originally formed in 1913, the Federal Reserve was meant to protect America’s economy from financial crises. It has failed dramatically in this task. Not perturbed by their obvious failure, the bureaucrats in charge of the Fed have now discovered how much power they truly wield thanks to their unconventional monetary policies.…
By Sasha Cekerevac Another day and another record-high stock market is what it seems like these days. That must mean that the economic recovery in America is close at hand, right? Not so fast; the data on job creation appears to show that the situation is actually worsening. Job creation is crucial to this economic…
[0:22] 1.40 in the euro/dollar, red line in the sand for the ECB or not? No [01:13] Where do we see cable heading in the next few weeks? Up [01:55] If cable moves up to 1.65, should we expect a reaction from the Bank of England? Yes [02:33] Miscommunication on the part of the Fed…
By Zak Mir. One of the best stock market rules kicked in again today in the form of “abrupt culture” specialist Ryanair (RYA) delivering its second profits warning. The question now is how long do we have to wait for warning number 3? Ironically, having just flown on EasyJet (EZJ), there is a hint that…
By Zak Mir. You would not believe how much PR spam the Editor of SpreadBet Magazine receives on a daily basis from PR agencies trying to get us to promote the latest and greatest service aimed at spreadbetters. For the most part this gets dumped immediately in the trash folder, but every now and again…
By Dominic Picarda. Equities have been taking a breather for the past couple of sessions following their latest burst higher. I see this as a healthy pause. We are now, of course, in the seasonally more bullish time of the year for the stock market, which makes just one more reason to keep faith with…
The Fed will have to increase QE (not taper it) because systemic debt is compounding faster than production and interest rates are already zero-bound. Lee Quaintance noted many years ago that the Fed was holding a burning match. This remains true today (only it is a bomb with a short fuse). Thirteen years after the over-levered…
