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The Economist Playing Fast And Loose With Data

The Economist Playing Fast And Loose With Data

The Economist generally does a good job analyzing economic and financial data and synthesizing/discussing the results. But once in a while the authors try to pull a fast one on the readers. Here is an example. In the chart below the author argues that the current US unemployment rate is abnormally low. Given how weak […]
Germany Gives Greece Grexit Referendum Greenlight

Germany Gives Greece Grexit Referendum Greenlight

Headline risk surrounding Greece will likely weigh heavily on investors’ minds throughout the week as Syriza faces one of its biggest tests yet when a €750 million payment to the IMF comes due on Tuesday. Despite rampant skepticism and a warning from Germany’s Schaeuble that countries can “accidentally” become insolvent, FinMin Varoufakis claims Greece will […]
US Borrows Short-Term Funds For Free

US Borrows Short-Term Funds For Free

US government debt managers may be envious of many European countries that are able to sell debt with a negative yield. The Federal Reserve has made it clear that it intends to begin normalizing interest rates when it becomes more confident that its mandates will be achieved. Fed officials think such an opportunity will present itself […]
Hey, Fed – Where’s Our Silver Lining?

Hey, Fed – Where’s Our Silver Lining?

As I read the news and watch the markets, I’m struck by the yawning difference between what’s going on with the economy and what is happening with equities. I know the worn out arguments. People are buying stocks because they don’t have many choices. That’s fair, to some extent. The return on stocks (dividends, expected […]
The Big Four Economic Indicators: Nonfarm Employment

The Big Four Economic Indicators: Nonfarm Employment

Official recession calls are the responsibility of the NBER Business Cycle Dating Committee, which is understandably vague about the specific indicators on which they base their decisions. This committee statement is about as close as they get to identifying their method. There is, however, a general belief that there are four big indicators that the committee weighs […]
GBP/USD Forex Signal For May 11, 2015

GBP/USD Forex Signal For May 11, 2015

GBP/USD Signals Update Last Thursday’s signals expired without being triggered. Today’s GBP/USD Signals Risk 0.75% per trade. Trades may only be made between 8am and 5pm London time today. Long Trade 1 Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.5396. Put the stop loss […]
Monday’s Pre-Market Insights: ROSE, ZU, ADRO, ETSY

Monday’s Pre-Market Insights: ROSE, ZU, ADRO, ETSY

Rosetta Resources Inc. (NASDAQ:ROSE) shares increased more than 35% in Monday pre-market trading to $26.20 following news that the energy producer will be bought out by Noble Energy Inc. Noble will acquire Rosetta in an all-stock transaction and will take on Rosetta’s $1.8 billion debt. Zulily Inc (NASDAQ:ZU) shares rose 21% to $16.20 per share after Alibaba […]
AES Corp. Misses On Q1 Earnings And Revenues

AES Corp. Misses On Q1 Earnings And Revenues

The AES Corporation (AES – Analyst Report) is a global power company with generation and distribution businesses. This Arlington, VA-based company recently doubled its quarterly dividend, propelling investor’s interest in the stock. However, the company has been struggling to keep its costs under control. Moreover, the company’s earnings have suffered over the last two years because of poor hydrology […]
Monday Market Manipulation – China’s 3rd Attempt

Monday Market Manipulation – China’s 3rd Attempt

China has cut rates yet again.   The 3rd rate cut in 6 months (back to 2009 crisis lows) may seem like a desperate, last-ditch attempt to salvage a faltering economy to some – but not to our MSM talking heads – who see it as a bold policy initiative, well-timed to…  I don’t know, whatever BS […]
Utilities On Verge Of Breakdown, Suggesting Higher Interest Rates

Utilities On Verge Of Breakdown, Suggesting Higher Interest Rates

CLICK ON CHART TO ENLARGE For many years investors have viewed Utilities as sensitive to interest rates. Is this still true? Whether they are sensitive to rates are not, an important test of channel support is very near at (1) above. From 2003 to 2007, XLU pretty did well. From 2007 to 2008, it appears […]