Category Archive: Finance
When Mean Reversion Fails
Are equities overvalued? Is the economic expansion long in the tooth? — In attempting to answer these questions, we often look to averages: -What is the average valuation? -What is the average length of an expansion? We then take the present environment and compare that to the average past to make definitive statements about the […]
EUR/USD Ticking Higher Ahead Of Crucial Moment In Catalonia
EUR/USD is trading slightly higher in the well-known range at 1.1770, It is some 30 pips above the levels seen earlier in the day. Resistance awaits at 1.1790 and support is at 1.1685, the extremes seen in recent days. Is this the calm before the storm? Markets are not pricing in a deterioration in the […]
September 2017 Payrolls Report Distorted
The much awaiting monthly payroll figures from the US showed that the economy was hit by the two hurricanes in September. However, the underlying data although a bit distorted suggests long-term pressures building up. Summary: Payrolls decline 33,000 in September, missing estimates of 82k increase August payrolls revised higher to 169k Unemployment rate falls to […]
Mapping The World’s Trillion-Dollar Asset-Manager Club
In the late 1700s, it was the start of the battle of stock exchanges: in 1773, the London Stock Exchange was formed, and the New York Stock Exchange was formed just 19 years later. And while London was a preferred destination for international finance at the time, Visual Capitalist’s Jeff Desjardins notes that England also had laws that […]
Stocks To Watch: AMZN, AJRD, CMCSA
Long Amazon (AMZN) Long Aerojet Rocketdyne (AJRD) Short Comcast (CMCSA)
Bank Stocks Earnings Preview: What To Expect From BAC, JPM, C, & WFC
The start of Q3 earnings season is finally upon us, and the first significant handful of S&P 500 companies will release their latest quarterly results this week. Of these, the most highly anticipated reports will be those of our big financial firms—including Bank of America (BAC – Free Report), JPMorgan Chase (JPM – Free Report), Citigroup (C – Free Report), and […]
A Stock, A Bond Or Both?
In my monthly newsletter, The Oxford Income Letter, AT&T (NYSE: T) is listed as a “Buy.” I like its nearly 5% yield, steady cash flow and market domination along with Verizon (NYSE: VZ). I’ve had the stock in the portfolio since February 2014. Bond Strategist Steve McDonald is also a fan of Ma Bell. As a result, he recommended buying […]
US Dollar May Erase Near-Term Losses As FOMC Minutes Approach
The US Dollar edged lower against the G10 FX majors in Asia Pacific trade, extending what looks like a corrective pullback started in the prior session. The greenback hit a six-week high against an average of its top counterparts on Friday as September’s jobs report added to evidence arguing for another Fed rate hike before year-end. A […]
A Curiously Non-Quantitative Assessment Of Deregulation Effects On Economic Growth
And a funny choice of citations. The CEA released its first “report” under the leadership of Kevin Hassett. The report, entitled The Growth Potential of Deregulation, is summarized thusly: Excessive regulation is a tax on the economy, costing the U.S. an average of 0.8 percent of GDP growth per year since 1980. This taxation by regulation […]
EUR: Broadly Consolidating Around 1.17; GBP: Likely To Recover Into 1.3250-1.3300 – ING
GBP/USD bounced from the lows and EUR/USD is stuck in range. What’s next? Here is the view from ING: Here is their view, courtesy of eFXnews: ING FX Strategy Strategy Research expects the EUR to broadly consolidating this week in the absence of a spike in EZ political risks. “Politics will overshadow ECB policy for the EUR […]
