Category Archive: Finance, No picture
Household Incomes: The Value Of Higher Education – Monday, Oct. 22
What is the value of education for household income? The Census Bureau’s annual survey data for 2017 published last month gives us some interesting insights into this question. The median income for all households with a householder age 25 and older was $62,625. The chart below shows the median annual household income for nine cohorts […]
This Will Cause The Next Financial Crisis
Rumors of a future financial crisis are spreading once more, as subprime mortgages have made a return under new labels such as “impaired credit” or “complex prime”. On an international level, the latest report by the IMF warns against the “risks of rollback, waning multilateralism, and regulatory fatigue” that may bring about a slowdown in global economic activity and […]
Stocks Are Doing Something They Haven’t Done Since The Dot Com Bubble
Third quarter earnings season is set to be another blockbuster for bottom-line growth, with EPS expected to grow above 20% Y/Y for the third quarter in a row, and yet some problems are emerging as traders begin to fret what happens in 2019 after the anniversary of the Trump tax reform pushes earnings growth sharply […]
USD/CAD Weekly Technical Outlook: Price At Key Resistance, BoC On Tap
In this series, we scale-back and take a look at the broader technical picture to gain a bit more perspective on where we are in trend. The Canadian Dollar has been under considerable pressure for the past three weeks (USD/CAD higher more-than 2% month-to-date) with price now testing a critical resistance confluence ahead of the Bank of Canada […]
Understanding The CFNAI Components – Monday, Oct. 22
The Chicago Fed’s National Activity Index, which we reported on this morning, is based on 85 economic indicators drawn from four broad categories of data: Production and Income Employment, Unemployment, and Hours Personal Consumption and Housing Sales, Orders, and Inventories The complete list is available here in PDF format. In this morning’s Chicago Fed update, we learned that […]
China Builds Infrastructure, US Drops Bombs
Obama bombed 7 countries. Trump is threatening Iran. Meanwhile, China has been building infrastructure. The American Conservative asks Is China Waiting Us Out? The subtitle “While the U.S. bombs, Xi Jinping is building—one power play at a time” provides the answer, but let’s investigate the details. The one constant in recent U.S. foreign policy—regardless of which […]
Extreme Fear – Fed To Hike Rates Until Something Breaks
Extreme Fear Continues The S&P 500 fell 4 basis points. Dow rallied 0.26% because Proctor and Gamble beat earnings estimates. This caused its stock to increase by 8.8%. The Nasdaq fell 0.48% and the Russell 2000 fell 1.2%. Advanced Micro Devices was the biggest loser in the S&P 500 as it fell 11.1%. The best […]
USD/CAD Testing Bearish Channel Resistance Ahead Of BOC Wednesday
The week has gotten off to a slow start in terms of impactful economic data, and the dearth of scheduled releases will carry over through tomorrow’s trade as well. That said, the latter half of the week should be more interesting for FX traders, starting with Wednesday’s Bank of Canada meeting. Despite weaker-than-expected CPI (-0.4% […]
Stop(ped) The (Printing) Press
Banks in China have to hoard liquidity ahead of their weeklong holidays, twice each year. The bigger of the two, related to the Chinese New Year, occurs in either January or February. The second, associated with China’s National Day, takes place at the beginning of every October and is still a formidable challenge to the […]
GBP/USD Forecast: Post-EU Summit Weakness To Persist As Bull Trend Snaps
GBP/USD is back under pressure even as U.K. Prime Minister Theresa May argues that the Brexit negotiations are ‘95%’ complete, and recent price action raises the risk for a further decline in the exchange rate as it carves a series of lower highs. GBP/USD FORECAST: POST-EU SUMMIT WEAKNESS TO PERSIST AS BULL TREND SNAPS GBP/USD stands at risk […]
