Category Archive: Finance
Charts Look Positive For April
Good times (and volatility) ahead? Luckily, when looking for signs of market momentum, it’s easier to read charts than tea leaves. And some of those charts are giving off good vibes now. First of all, there’s the Weekly Leading Index (WLI) put out by the Economic Cycle Research Institute. Year-over-year growth in the WLI has […]
Cash Is King, But Only With The Right Prime Minister
For some reason, I can’t bring myself to shake the old notion that “cash is king.” I get that it hasn’t been the hottest concept on the Street lately, with interest rates as low as they are. But with more than the usual level of uncertainty today (the future of interest rates, the presidential election […]
Puerto Rico Bonds Plunge After Senate Passes Debt Moratorium Bill
The ongoing feud between Puerto Rico and its mostly hedge fund creditors is promptly shaping up as the next “Argentina”, where “vulture investors” may well end up holding the island commonwealth hostage for years, during which time, however, they won’t get paid. This is shaping up as the latest development in the saga in which […]
The Real Cost Of Growth For Gold Miners
In the Real Cost of Mining Gold we examine cost reporting in mining which can be made obscure by conventionally used non–GAAP measures. We standardized and reviewed the financial ratios of seven major mining companies historically and rated them based on cash adequacy and operational health. In The Real Value of Gold in The Ground […]
High Yield: Risk Going ‘Off’?
This little short-term pattern does not look too appealing as HYG looks foiled on its 3rd attempt at the 200 day moving average. High Yield vs. Treasury is dropping below the SMA 50 in a similarly gross looking pattern. Finally, HY vs. Investment Grade is even worse. These charts made hard bottoms […]
Why Precious Metal Rally On Track
So it was the biggest bounce in stocks since 1933, and best quarter for gold since the 70’s. None of this should surprise you based on what’s going on out there (think all forms of debasement), but for us the most important observation is gold has signaled it’s ready to start its next leg higher. Silver should […]
Greek Debt: Back In The Headlines
The issue of Greece’s insolvency had receded a bit from the headlines since the stormy days of last summer. Alpha-savvy readers will surely recall, though, that in July 2015, the Greek government and its European creditors reached a bailout agreement that required actions by the former, especially on pensions and taxes. Some violence in the […]
February 2016 Trade Data Improved
A quick recap to the trade data released today continues to paint a relatively dismal an improving picture of global trade. The unadjusted three month rolling average value of exports and imports accelerated. Many care about the trade balance which degraded. Import goods growth has positive implications historically to the economy – and the seasonally […]
How To Build A Unicorn From Scratch – And Walk Away With Nothing
This is a grim fairy tale about a mythical company and its mythical founder. While I concocted this story, I did so by drawing upon my sixteen years of experience as a venture capitalist, plus the fourteen years I spent before that as an entrepreneur. I’m going to use some pretty simple math and some […]
ISM Non-Manufacturing PMI Beats With 54.5 – USD Extends Gains
The US services sector is doing better than expected: the ISM PMI shows a score of 54.5 points. Among the components, the employment sector returns to expansionary territory with 50.3 points, new orders are up to 56.7 and prices paid are up to 49.1 points. So, prices are still falling, but at a slower pace. The […]
