In recent weeks it has been happy days for investors enjoying the highs on the S&P 500 and associated rallies across Germany, the UK, Japan and elsewhere. But that joy is a world away from the pain that has been inflicted on the majority of resource related equities and their investors. The AS39 Index on…
“Helicopter” Ben Bernanke Back in January, the Federal Reserve subtly changed its language regarding the effectiveness of QE as a monetary strategy. The first indication came from the Fed’s December 2012 FOMC minutes (the meeting during which the Fed announced QE 4). Since this time, there have been several key developments. They are: 1. Bernanke…
As mentioned in a previous blog here on Spreadbet Magazine, I had an “academic” argument over the Nikkei / Japanese economy in the late 1980s and which probably explains why I am merely the “UK’s Leading Chartist” as opposed to say, the “world’s leading chartist” That said, the former editor of Shares Magazine, Ross…
The long-lasting low tide of liquidity created by the US Federal Reserve’s monetary policies may, finally, be coming to an end. Recent weeks have seen a ratcheting up of price volatility, in particular in the precious metals – Gold and Silver and also in the wildly overbought Nikkei (something we flagged just days in advance,…
According to NYSE’s April report, margin debt (ie monies borrowed to speculate in stocks) hit an all-time record level at $384bn, surpassing its prior high registered in 2007 – just before the great financial crisis unfolded… The number is the latest evidence on how successful the FED has been in directing money to the equity…
What I find particularly interesting, certainly in an age where we have so much trading software and so many ‘robots’ designed to take the guesswork out of where the markets are headed, is that there is relatively little discussion about how good they really are. Indeed, rather than relying upon broker research or of course…
It is becoming clear just how much optimism was priced into the success of Japan’s monetary policy bazooka with another 5% drubbing overnight. As JPMorgan’s Michael Cembalest notes, P/E multiples rose from 11x to 17x since last Labor Day, and breakeven inflation implied by Japanese JGB-i bond markets rose to 2%, a level Japan has…
During the last 50 years the US dollar has gained the status of the world’s primary reserve currency. One against which all commodities are priced. This unique status has allowed the United States to continue to raise its debt ceiling limits, to spend much more than the domestic economy really allows for, and, in recent…
“In Vegas, everybody’s gotta watch everybody else. Since the players are looking to beat the casino, the dealers are watching the players. The box men are watching the dealers. The floor men are watching the box men. The pit bosses are watching the floor men. The shift bosses are watching the pit bosses. The casino…
