Category Archive: Finance
The Real Reason Wages Have Stagnated: Our Economy Is Optimized For Financialization
The Achilles Heel of our socio-economic system is the secular stagnation of earned income, i.e. wages and salaries. Stagnating wages undermine every aspect of our economy: consumption, credit, taxation and perhaps most importantly, the unspoken social contract that the benefits of productivity and increasing wealth will be distributed widely, if not fairly. This chart shows that labor’s declining […]
Weekend Reading: The “Real” Vampire Squid
First, it was Hurricane “Harvey” and an expected $180 billion in damages to the Texas coastline. Now, “Irma” is speeding her way to the Florida coastline dragging “Jose” in her wake. Those two hurricanes, depending on where they land will send damages higher by another $100 billion or more in the weeks ahead. The immediate funding needed for relief to Americans […]
GBP/USD: Bullish On Price Extension
The GBP/USD pair followed through higher on Friday on the back of Thursday gains. Support lies at the 1.3150 level where a break will turn attention to the 1.3100 level. Further down, support lies at the 1.3050 level. Below here will set the stage for more weakness towards the 1.3000 level. Conversely, resistance stands at […]
Are Factors Losing Their Edge?
Several articles from a variety of sources recently caught my eye. The common thread of these articles was that return factors—those that have shown a propensity to outperform the market over time—have been losing their ability to outperform. Most of these articles posit that as factors have gained in prominence in financial circles, the potential […]
Debt Ceiling Capitulation Spells Trouble Ahead For The Dollar
“Frustration” no longer adequately describes what reformers in Congress – along with millions of investors and taxpayers who voted for reform – are feeling. For many, hopelessness is beginning to set in on the prospects for tax, budgetary, and monetary reform following Wednesday’s GOP capitulation on the debt ceiling. Democrats coupled the Hurricane Harvey $7.85 […]
The Top 10 Dividend Growth Stocks For Young Investors
Dividend stocks can generally be separated into two groups. The first group is made up of high-yield stocks. Think telecoms and utilities, which offer higher dividend yields of 4%+. Their high yields are attractive, but the trade-off is that they tend to have low dividend growth rates. Sometimes, their dividend increases barely beat inflation. The second […]
Equifax Shares Could Close Down 10% On Breach, Says Deutsche Bank
Deutsche Bank analyst Kevin McVeigh believes shares of Equifax (EFX) could close down 10% today after the company disclosed a security breach potentially impacting up to 143M consumers. The stock in premarket trading is down 13%, or $18.72, to $124.00. The analyst says that while difficult to quantify, his best effort suggests the financial impact […]
USD/CAD: Post-BoC Losses To Accelerate On Strong Canada Employment
Trading the News: Canada Net-Change in Employment Another 15.0K expansion in Canada Employment may fuel fresh 2017-lows in USD/CAD as it puts pressure on the Bank of Canada (BoC) to implement additional rate-hikes over the coming months. The BoC may move to the sidelines after delivering two consecutive rate-hikes as the central bank notes ‘Future monetary policy decisions […]
Wipeout: US Dollar Crashes Across The Board
Dear lord: the pressure on the dollar is unrelenting. It looks like no one wants to be the idiot that’s long USD headed into a weekend that could see a catastrophic hurricane strike on Florida and another ICBM launch for North Korea. As tipped overnight in our post on the yuan, the losses really started to […]
Dull End To The Week; L&T Rallies 4%
Indian share markets continued to trade flat in the afternoon session amid continued caution about global risk factors such as North Korea. At the closing bell, the BSE Sensex closed higher by 25 points and the NSE Nifty finished up 5 points. The S&P BSE Mid Cap finished down by 0.4% while & S&P BSE Small Cap too finished down by 0.2%. Gains were […]
