Category Archive: Finance
Gold Flash-Crashes
After the shenanigans in US mega-tech stocks over the last two days and the seemingly well orchestrated melt-up to pre-J-Hole levels in the dollar, why should anyone be surprised that ‘someone’ decided to try to sell $1.1 billion notional into the Asian open… Was The Bank of Japan at work again? The flash crash lows coincided […]
Why Wages Have Lost Ground In The 21st Century
One of the enduring mysteries for conventional economists is why wages aren’t rising for the bottom 95% even as unemployment is low and hiring remains robust. According to classical economics, the limited supply of available workers combined with strong demand for workers should push wages higher. Why have wages for the bottom 95% lost ground in […]
EC Asymmetries In Fiscal Policy, Again
One of the most interesting papers presented at the Jackson Hole conference was written by Alan Auerbach and Yuriy Gorodnichenko, entitled Fiscal Stimulus and Fiscal Sustainability. A key takeaway is that fiscal stimulus, during a slump, is likely to reduce — rather than raise — the debt to GDP ratio. This point is highlighted in Figure 3 in the paper, […]
Five Below, Inc. Reports Q2 Net Sales, Comp & Earnings Exceeded Outlook & Raises Full Year Fiscal 2017 Guidance
Written by Lorimer Wilson Five Below, Inc. (NASDAQ: FIVE) today announced Q2 net sales which exceeded the high end of their sales, comp and earnings outlook and raised full year fiscal 2017 guidance. About Five Below: Five Below is a specialty value retailer targeting teen and pre-teen customers and offers a broad range of trend-right, high-quality […]
Projecting The Effective Demand Limit
The economy expands in terms of capacity utilization until the effective demand limit is reached. The following graph shows the effective demand limit. (link to data… https://fred.stlouisfed.org/graph/?g=eUj3) The red link of effective demand stays above real GDP. One thing to notice about the red line of effective demand is that after is bounces off of real […]
Stocks To Watch: WTW, DIS, AAOI
Today’s stock picks Short Weight Watchers (WTW) Short Walt Disney (DIS) Long Applied Optoelectronics (AAOI)
Exactly What The Bulls Wanted
All but one of the 14 major market sectors was up today. More importantly… The top 3 sectors in our summary table (sorted by 6 month change) were 3 of the 4 biggest movers. This is good news for the bull market – SMH, XLK, and XLV reasserted their leading trends. Additionally, the Biotech’s (IBB), […]
M&A Theme Continues To Boost Biotech Stocks
M&A Boosts Biotech Stocks For Third Day Gilead Sciences (GILD) and Bluebird Bio (BLUE) Both Soar Today Biotech Sector Back to 2017 Highs The prospect of more M&A boosts biotech stocks for a third day this week. The large cap based IBB was up 1.87% today and 6.48% over five days to $323.76 approaching its YTD high of $327.34. […]
Agriculture Markets Report – Wednesday, August 30
A review of the day’s trading in the agriculture markets. Video length: 00:13:06
TrueCar Can’t Serve Two Masters
The last time we saw a business model as fundamentally flawed as TrueCar (TRUE: $17/share) was four years ago, when we put Angie’s List (ANGI) in the Danger Zone. In fact, TrueCar today looks very similar to Angie’s List in the summer of 2013, just before the stock plummeted over 50%. Just like ANGI in 2013, TRUE […]
