Category Archive: Finance

The ECB Will Likely Be Hawkish On Thursday

The ECB Will Likely Be Hawkish On Thursday

ECB’s Big Decision The chart below shows the aggregate assets the 4 major central banks from developed market economies have been acquiring over the past 12 years. As you can see, the asset buying has slowed and accelerated in the past few years, but the aggregate share of GDP has almost never stopped going up. […]
Is The Bubble Economy Set To Burst?

Is The Bubble Economy Set To Burst?

Central banks continue to focus on consumption inflation, not asset inflation, in their decisions. Their attitude has supported one bubble after another. These bubbles have led to rising inequality and made mass consumer inflation less likely. Since the 2008 financial crisis, asset inflation has fully recovered, and then some. The US household net worth is […]
Warmer Long-Range Forecasts Pull Natural Gas Prices Lower

Warmer Long-Range Forecasts Pull Natural Gas Prices Lower

Prompt month November natural gas prices fell a bit less than 2% today as warmer long-range forecasts decreased heating demand expectations. This did not come as a surprise to our subscribers, as all week we had been watching the potential that long-range forecasts would turn warmer. On Monday we published our Note on the Day explaining that […]
New Home Sales Better In September, But Which One?

New Home Sales Better In September, But Which One?

New home sales rose almost 20% in September 2017 from August 2017. In just the one month, the pace of sales surged from a seasonally-adjusted annual rate of 561k to 667k. The latter monthly estimate was the highest since 2007, therefore much is being made of that comparison. As usual, it’s a false one. Given […]
Is It Time To Start Panicking?

Is It Time To Start Panicking?

There’s an old Wall Street adage that says: “Don’t panic until the last bear throws in the towel.” Folks, start panicking. David Einhorn became a billionaire hedge fund manager by buying undervalued stocks and successfully shorting overvalued ones. He’s the quintessential “value guy.” He’s been out of step with this market rally for a long […]
Teva: Is Another Dividend Cut In The Cards?

Teva: Is Another Dividend Cut In The Cards?

Teva’s (TEVA) is facing pricing pressure in its core generics business, while the company is laden with debt. After disappointing Q2 results in which the company’s gross margins declined from 57% to 50%, Teva cut its dividend 75% to 8.5 cents: Generic drugmaker Teva Pharmaceutical Industries took a pounding from investors after it slashed its […]
PennantPark Floating Rate Capital Ltd. Prices Public Offering

PennantPark Floating Rate Capital Ltd. Prices Public Offering

NEW YORK, Oct. 25, 2017 (GLOBE NEWSWIRE) — PennantPark Floating Rate Capital Ltd. (the “Company”) (Nasdaq:PFLT) announced that it has entered into an agreement to sell 6,000,000 shares of common stock resulting in net proceeds exclusive of offering expenses to the Company of approximately $84.3 million, or $14.06 per share.   The Company’s investment adviser, PennantPark […]
Weekly Heating Oil Prices – Wednesday, Oct. 25

Weekly Heating Oil Prices – Wednesday, Oct. 25

We’ve used data based on the Energy Information Administration (EIA), which publishes price data weekly on home heating oil in 38 states by dollar-per-gallon before taxes. Unlike natural gas and electricity, home heating oil is provided by independent retailers. The latest price of home heating oil nationwide is $2.67, up a penny from last week. Supply is […]
Caterpillar & 3M Show The Economy Is Strong

Caterpillar & 3M Show The Economy Is Strong

The Market Never Falls Anymore Even though the Dow was overbought heading into the week, the biggest determining factor for how it would go was earnings. This shows how technical analysis has its limits when news is released. The Dow rallied 0.73% because Caterpillar and 3M reported great results. These reports are evidence of the […]
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                        In China, Innovation Cuts Both Ways

HH In China, Innovation Cuts Both Ways

Written by Matthew Bey China is in a bind. The heavy industry that propelled the country’s economy through three decades of dizzying growth has reached its limits. To escape the dreaded middle-income trap, China will need to shift its focus from low-end manufacturing to other economic industries, namely the technology sector. Beijing has put tech at […]