Author Archive: Jeremy Parkinson
After 10 Years Of “Recovery,” What Are Central Banks So Afraid Of?
If the world’s economies still need central bank life support to survive, they aren’t healthy–they’re barely clinging to life. The “recovery”/Bull Market is in its 10th year, and yet central banks are still tiptoeing around as if the tiniest misstep will cause the whole shebang to shatter: what are they so afraid of? The cognitive dissonance […]
RBC Capital Ups Netflix Target After Positive Survey Results
Shares of Netflix (NFLX ) are on the rise after RBC Capital analyst Mark Mahaney raised his price target on the streaming service’s stock to $440 following positive U.S. and U.K. survey results. SURVEY SAYS: In a research note to investors, RBC Capital’s Mahaney raised his price target for Netflix to $440 from $360 while […]
Japan’s Economy On Path To Recovery: 3 Fund Picks
Corporate capital expenditure in Japan rose an impressive 12.8% in the second quarter. This marked its highest level in about 12 years. Such developments raised hopes of an economic recovery led by increase in business spending. Further, Japan’s Services Purchasing Managers Index surged to a four-month high in August. Under such circumstances, investing in mutual […]
ISM Non-Manufacturing: Respondents Remain Positive
The Institute of Supply Management (ISM) has now released the August Non-Manufacturing Purchasing Managers’ Index (PMI), also known as the ISM Services PMI. The headline Composite Index is at 58.5 percent, up 2.8 from 55.7 last month. Today’s number came in above the Investing.com forecast of 57.0 percent. Here is the report summary: “The NMI® registered 58.5 percent, […]
Why The “Economy Is An Engine” Metaphor Is So Wrong
Is the economy “overheating,” or is it “humming” along smoothly? Should the Federal Reserve “prime the pump” to spur investment, or “pump the brakes?” Such questions, of course, use an engine metaphor to describe the economy. But why? In fact, the economy is more like a complex ecosystem rather than an engine or machine. Indeed, […]
Tech Wreck Continues, FANG Hits 3-Week Lows, EM Stocks Enter Bear Market
Contagion continues… The tech stock rout, which accelerated during yesterday’s Congressional hearing on social network bias, accelerated on Thursday, this time led by a selloff in chipmakers dragging the Nasdaq Composite to a two-week low. The biggest loser was KLA-Tencor, which sank 7.8%, pulling the semiconductor space lower by 1.7%, while semi cap equipment peers Lam […]
2Q2018 (Final): Headline Productivity Improves
A simple summary of the headlines for this release is that productivity improved while the labor costs declined. However, year-over-year analysis shows labor costs rising faster than productivity. Analyst Opinion of Productivity and Costs I only look at year-over-year data – the headline compounding distorts the view. I have issues with the way productivity is […]
This Foreign Market “Contagion” Is About To Go Viral
Europe has always played a huge role in the US markets. The US Treasury reported that European investors and central banks held $1.6 trillion of US Treasury securities in June. More importantly, they had purchased $114 billion of that over the past year, including $32 billion from April to June. And although there’s no breakdown […]
Apocalypse, Or Not?
Members of the American libertarian movement, particularly extremist preppers, are often associated with a belief that a complete breakdown in society is the only outcome from government economic policies and will lead to complete social disintegration. At the center of their concerns is monetary destruction, with other issues, such as the erosion of personal freedom […]
Do Stocks Perform Better When Manufacturing Is Booming?
US manufacturing is booming. In a report released this week, the ISM Manufacturing Index moved up to 61.3, the second-highest level in the last 30 years. Data Source for all charts/tables herein: FRED, Bloomberg Many are saying that’s great news for the stock market because increased manufacturing activity is evidence of a stronger economy. This […]
