Author Archive: Jeremy Parkinson

USD/JPY And AUD/USD Forecast – March 21, 2016

USD/JPY And AUD/USD Forecast – March 21, 2016

USD/JPY The USD/JPY pair initially tried to rally during the course of the day on Friday, bouncing off of the 111 level below that of course has offered quite a bit of support. Because of this, it looks if we are ready to continue consolidating in general, and we could rise as high as the […]
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                        May The Phillips Curve Rest In Peace

EC May The Phillips Curve Rest In Peace

In 1958, economist William Phillips claimed there was a historical inverse relationship between the rate of unemployment and the corresponding rate of inflation. His conclusion was that full employment (whatever that means) was inflationary. He illustrated his claim through a chart referred to as the Phillips Curve. The 1970’s stagflation outbreak in the U.S, which […]
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                        The Daily Shot And Data – March 21, 2016

E The Daily Shot And Data – March 21, 2016

Greetings, We start with Russia where the central bank did not cut rates in spite of falling inflation. Given the persistent economic weakness, the rationale for such policy is unclear other than an attempt to strengthen the ruble further. This is certainly a hawkish stance by the Bank of Russia. Source: Natixis Driven by firmer […]
Dollar Reversal

Dollar Reversal

“Davidson” submits: My call of 18mos ago that the US$ would reverse once this Momentum Trade had run its course was based on understanding Free Markets. One cannot time these things, but one can understand then qualitatively. Many losses in energy related and Intl issues will be reversed by the current weakening in the US$. […]
Silver Prices Are Trying To Carve Out A Short-Term Low

Silver Prices Are Trying To Carve Out A Short-Term Low

The technical outlook from Friday still stands. On Friday we stated that the overall trend is bullish above the March 16 low of $15.21 and traders may see a pullback to the $15.57 – $15.81 range as an opportunity to add to their bullish exposure. Today we are seeing signs of this scenario playing out. The $15.57 – $15.81 range was […]
Greek Banks Admit To Charging For Converting Large Bills

Greek Banks Admit To Charging For Converting Large Bills

Note: How nice of them to be ‘honest’ for once. However, like the writer says, this is a clever way to ‘call in the money’. The Greeks are much smarter than Americans. The Greeks fear confiscation. The only negative aspect of this type of move likely to be noticed in America is the inconvenience of […]
Bursa Malaysia Changes Direction

Bursa Malaysia Changes Direction

Dictated by the simple fact that emerging markets are outperforming U.S. equities since January, we’re continuing our world tour with this research. We don’t dismiss that U.S. equities have been on quite a rally since their early February low. However, as impressive as that’s been, emerging markets have been even more so. Today, we’re taking a look at Malaysia […]
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                        “Economist” In Me Says This Is A Threat To Gilead

E “Economist” In Me Says This Is A Threat To Gilead

New York Attorney General Eric Schneiderman recently launched an investigation into 16 health insurance companies’ coverage of HCV and their restrictions. I concluded that [i] by offering more access to high-priced HCV drugs, insurers might incur higher benefit pay outs and [ii] insurers could potentially form coalitions to negotiate steeper discounts from Gilead GILD and […]
Understanding Flow Of Funds Accounting

Understanding Flow Of Funds Accounting

After the post a few weeks ago where I showed that Post-Keynesian Stock Flow Consistent modeling has become very popular on Wall Street I got a ton of emails asking for more details on this approach. So, here’s a short description and a few good links for you to explore if you’d like. Stock flow consistent modeling is […]
Here’s What To Do About Sherwin-Williams’ Acquisition Of Valspar

Here’s What To Do About Sherwin-Williams’ Acquisition Of Valspar

Sherwin-Williams (SHW) is the leader in the North American coatings (paint) industry.  The company is the 3rd largest coatings corporation globally. Source:  Source: Sherwin-Williams Credit Suisse Presentation, slide 5 The company is not an overnight success.  Sherwin-Williams was founded in 1866. Sherwin-Williams’ management has a long history of rewarding shareholders with rising dividend payments.  The company has paid increasing dividends […]