Author Archive: Jeremy Parkinson
We The People
“We want capitalism and market forces to be the slave of democracy rather than the opposite.” – Thomas Piketty The essential underlying elements of supply, demand, scarcity, and prosperity described in our first article in this series, The Forgotten Path to Prosperity, are keys to gaining a better understanding of what constitutes a well-functioning economy. In this […]
NXP Semiconductors Downgraded To Sell At Stifel Amid Signs Of Possible Peak
As previously reported, Stifel analyst Tore Svanberg downgraded NXP Semiconductors (NXPI) to Sell from Hold, arguing that multiple recent industry data points seem to suggest the analog and mixed-signal semiconductor markets are peaking. Amid the potentially peaking semi cycle, NXP has re-emerged with a post-takeover plan for a massive buyback, which translates to higher debt, […]
Is The Corporate Bond Market Overheating? Look At The Lenders
Recently, a growing number of investors and market commentators have been advocating for caution in credit lending—rightfully so, in my opinion. However, despite the publicity this has received in the press, it appears that little has actually been done to clamp down on aggressive lending. Perhaps this should not be surprising since in practice, lending […]
MobileIron Product Expansion Fails To Drive Stock
According to a Statista report, the global Enterprise mobility management (EMM) market is expected to grow to $3.39 billion by the year 2021 from $1.86 billion in 2017. Another report by Strategy Analytics has more conservative estimates for the sector. The researcher estimates that the market will grow to $2.2 billion by 2022 from $1.8 billion in 2017. […]
August Producer Price Index: Core Final Demand Down 0.1% MoM
Today’s release of the August Producer Price Index (PPI) for Final Demand came in at -0.1% month-over-month seasonally adjusted, down from last month’s 0.0%. It is at 2.8% year-over-year, down from 3.3% last month, on a non-seasonally adjusted basis. Core Final Demand (less food and energy) came in at -0.1% MoM, down from 0.1% the […]
Chinese Government Encourages Share Buybacks As Bear Market Deepens
Rivets are starting to blow once more on the debt-on-debt Ponzi driving Chinese markets. Following the lead of western companies, corporate buybacks in China have surged in 2018 (see below). This is the latest desperate effort to stop asset bubbles from following their natural destiny to implosion. See the WSJ’s Record Buybacks Don’t Mean Buy in […]
Bubble Watch: The Fed Has Burst The Everything Bubble, Pt. 2
Yesterday’s piece generated a lot of interest, so we’re going to develop this theme some more. The key item of note is that while US stocks are holding up, the Fed’s hawkishness has already blown up much of the global financial system. In particular, Emerging Market Stocks have already entered full-blown bear markets. That’s the […]
As If Florence Wasn’t Enough
As if Florence was not enough. Not only are we preparing for Hurricane Florence in what could turn out to be the strongest mid-Atlantic storm in recorded history, now we must deal with the risks of more storms that are heading to and developing in the Gulf of Mexico, as well as lots of news […]
July 2018 CBO Monthly Budget Review: Revenues Up 1%, Outlays Up 7%
from the Congressional Budget Office The federal budget deficit was $895 billion for the first 11 months of fiscal year 2018, the Congressional Budget Office estimates, $222 billion more than the shortfall recorded during the same period last year. Revenues were 1 percent higher than in the same period in fiscal year 2017, but outlays […]
DXY Index Sideways Grind Continues Ahead Of BOE, ECB Tomorrow
The US Dollar (via the DXY Index) has been treading water the past few days, essentially biding time since the start of September: the DXY Index closed at 95.10 on August 31, and at 95.10 is where it opened up today. While traders continue to discuss intense headlines regarding the US-China trade war or emerging market contagion, […]
