USD/CAD – Back To 1.2600?
Of all the comm dollars, none has held up as well against the buck as the loonie. While all others have tumbled against the greenback, the Canadian dollar held firm rejecting 1.2500 level on multiple occasions. A big reason for loonie’s relative strength is the fact that the BOC is the only other G-7 […]
Secular Trends In Residential Building Permits And Housing Starts – Thursday, Oct. 19
Yesterday, we reported separately on the latest residential building permits and housing starts in the government’s monthly report, courtesy of the Census Bureau and the Department of Housing and Urban Development. Despite the fact that both are monthly SAAR series (seasonally adjusted annualized rate), they are exceptionally volatile and subject to extensive revisions. Thus it is unwise to assign […]
Hurricanes Aren’t The Only Reason Gas Prices Are High
While some of the rise in gas prices can be blamed on hurricane-related supply disruption, regulatory burdens play an even bigger role. Hurricanes Harvey, Irma, and Nate highlighted the exposure to life and property all along the Gulf Coast. Of the critical national assets that took a hit, the crux of the U.S. refining industry […]
October 2017 Initial Unemployment Claims Rolling Average Improvement Continues
Hurricanes Irma and Maria impacted this week’s claims taking procedures in the Virgin Islands and Puerto Rico. The market expectations for weekly initial unemployment claims (from Bloomberg/Econoday) were 235 K to 250 K (consensus 240,000), and the Department of Labor reported 222,000 new claims. The more important (because of the volatility in the weekly reported claims […]
Black Monday – 30 Years Between The Monetary Book Ends
This episode happened back in the days before cell phones, and that’s what made it all the more unnerving. Your editor was speaking to an audience of nearly 1,000 investors at a Salomon Brothers conference (our then employer) in Boca Raton on the morning of October 19, 1987. At first, a few people got up from their chairs and walked out, which […]
The Last Time Stocks Were This Calm, England Won The World Cup
1966 was a big year... Miranda Rights came into being in America, Vietnam War protests raged, the US Department of Transportation was created, the mini skirt was invented, Batman and Star Trek debuts, NASA launches Lunar Orbiter 1 – the first U.S. spacecraft to orbit the Moon, race riots raged in Atlanta, Ronald Reagan entered […]
Stocks Are 40% Undervalued Right Now
The bears have great arguments in the current market. Among the most interesting is that stocks are overvalued. But with interest rates where they are, stocks are deeply undervalued. The chart below shows the actual price-to-earnings (P/E) ratio of the S&P 500 and the justified P/E ratio, which is the fair value of the ratio based on interest […]
All Eyes On Amazon As Cities Compete For Second HQ
Amazon.com, Inc. (AMZN) seeks to be the world’s most customer-centric company, where customers can find and discover anything they may want to buy online. The company lists unique items in categories such as books, music, DVDs, videos, consumer electronics, toys, camera and photo items, software, computer and video games, tools and hardware, lawn and patio […]
A Position In DUST And Levels To Watch For PM Stocks
(Audio length 00:11:50) David Erfle, Editor of the Junior Miner Junky joins me today to share the reasons why he is taking a short-term position in DUST. We discuss the movements in the USD and US markets plus the upcoming Fed meeting in December. While the DUST position carries a negative outlook for the sector […]
