Wednesday , May 25 2022
Home / Tag Archives: Yield Curve (page 64)

Tag Archives: Yield Curve

The Printing Press: A Great Way To Fool People

Via SchiffGold.com, In his most recent Gold Videocast for SchiffGold, Albert K Lu interviewed John Rubino, founder of DollarCollapse.com. Rubino had a pretty compelling explanation for why there wasn’t a massive, sustained economic collapse a decade ago, and why he thinks it’s still lurking on the horizon. "The reason that we’re still here, when we really should have fallen apart based on how much debt there was out there, and various other measures of instability,...

Read More »

Gold Glows As Stocks Suffer Longest Losing Streak Since 2011

So much excitment but by the end of the month...   Some high-/low-lights for February... China's Shenzhen Composite Down 28.8% in 2 months - biggest drop since July 1994 S&P 500 Down 0.4% in Feb - 4th losing month in a row - longest streak since 2011 Dow Transports Up 6.75% in Feb - best month since Jan 2013 Financial Stocks Down 2.3% in Feb - 3rd loss in a row for first time since 2011 FANGs Down 4.5% in Feb - biggest drop since March 2014 10Y Treasury Yield Down 54bps in 2...

Read More »

Kuroda’s NIRP Backlash – Japanese Interbank Lending Crashes

Not only has the Yen strengthened and stocks collapsed since BoJ's Kuroda descended into NIRP lunacy but, in a dramatic shift that threatens the entire transmission mechanism of negative-rate stimulus, Japanese banks (whether fearing counterparty risk or already over-burdened) have almost entirely stopped lending to one another. Confusion reigns everywhere in Japanese markets with short-term interest-rate swap spreads surging and bond market volatility spiking to 3 year highs...

Read More »

“Perma-bears” 2 – BofA Economist 0

It was just last month when we checked in on BofA economist Ethan Harris who, in May of 2015 derided the “perma-bear” crowd for crowing about an abysmal Q1 GDP print. “Looking ahead, it is much too soon to declare victory, but we expect the data to improve in the months ahead as seasonal and other distortions fade,” Harris concluded, suggesting that if the double-adjusted data continued to “improve”, BofA’s economics team would be able to proclaim that the bears had been vanquished once and...

Read More »

A Contagious Crisis Of Confidence In Corporate Credit

Excerpted from Doug Noland's Credit Bubble Bulletin, Credit is not innately good or bad. Simplistically, productive Credit is constructive, while non-productive Credit is inevitably problematic. This crucial distinction tends to be masked throughout the boom period. Worse yet, a prolonged boom in “productive” Credit – surely fueled by some type of underlying monetary disorder - can prove particularly hazardous (to finance and the real economy). Fundamentally, Credit is...

Read More »

Oil Headline Rescues Stocks From Bloodbath As Precious Metals Soar

Market Psychology has swung from this...   To this...Losing SPY Religion   And seemingly back. *  *  * Gold grabs the headlines today. After beginning to surge yesterday, Hong Kong's reopen sparked a spike which then accelerated all day.   This was gold's best day since Nov 2008 and the highest level in a year...   With the best quarter in 30 years...   Perhaps even more stunning is the collapse in USDJPY since Kuroda unleashed NIRP - this is...

Read More »

“Billions Lost”

Submitted by Lance Roberts via RealInvestmentAdvice.com, Companies Lose Billions On Stock Buybacks I recently wrote an article about why “Benchmarking Your Portfolio Is A Losing Bet.” In that missive, I discussed all the things that benefit a mathematically calculated index versus what happens in an actual portfolio of securities. One of those issues was the impact of share buybacks: “The reality is that stock buybacks are a tool used to artificially inflate bottom line...

Read More »

Yellen Sinks Stocks, Craters Credit

Damn It, Janet! Yellen’s testimony Wed. “was not dovish relative to market expectations,” and didn’t take March off table, Morgan Stanley strategists Matthew Hornbach, Chirag Mirani, Guneet Dhingra write in note.   She “qualified most of the downside risks to the economic outlook with a positive spin,” while implying that tighter financial conditions need to persist in order for Fed’s economic outlook to change   Risk mkts will struggle in...

Read More »

Economics Professor: Negative Interest Rates Aimed at Driving Small Banks Out of Business and Eliminating Cash

More than one-fifth of the world’s total GDP is in countries which have imposed negative interest rates, including Japan, the EU, Denmark, Switzerland and Sweden. Negative interest rates are spreading worldwide. And yet negative interest rates – supposed to help economies recover – haven’t prevented Japan and Europe’s economies from absolutely going down the drain. Nor have they even stimulated spending. As ValueWalk points out: Japan has had ultra-low rates for...

Read More »

Either Banks Are Cheap… Or The Market’s Gonna Crash

Large cap financials have had an awful time in the last month and are 11.7% lower so far in 2016. As ConvergEx's Nick Colas details, that’s worse than pretty much anything else, including all other S&P 500 sectors, the Russell 2000 small cap index, and even the MSCI Emerging Markets Index.  This down and out sector is worth a look for three reasons. First, it seems clear now that the investment case for the Financials, based on a series of Fed rate increases and a steeper...

Read More »