Subprime Redux: Problems Brewing In Auto Loans
It’s classic subprime: hasty loans, rapid defaults, and, at times, outright fraud. Only this isn’t the U.S. housing market circa 2007. It’s the U.S. auto industry circa 2017. A decade after the mortgage debacle, the financial industry has embraced another type of subprime debt: auto loans. And, like last time, the risks are spreading as […]
The BOJ Bond Buying Binge
As the Bank of Japan is set to meet this week to review monetary policy settings it’s worth checking in on a couple of particularly relevant charts. The first one shows the Bank of Japan has now accumulated an impressive 45% of all outstanding Japanese government debt. Strictly speaking this is not debt monetization but it’s not […]
AUD/JPY Rallies To Fresh Yearly Highs – Initial 2017 Targets In View
Technical Outlook: AUD/JPY closed above technical resistance at 87.55/64 last week, keeping the broader long-bias intact. Price is pushing through the yearly opening-range highs on this stretch with the rally now eyeing our initial yearly target at 90.64-91.23. This range is defined by the 1.618% extension of the 2016 advance and the 50% retracement of the […]
Homebuilder Seniment Falls To Eight Month Low As Lumber Prices Spike
Shares of U.S. homebuilders are all trading lower after a key metric for the group missed expectations. HOME BUILDER SENTIMENT: Builder confidence for newly-built single-family homes dropped to its lowest level since before the Trump election. The confidence metric slipped two points in July to 64. The HMI measure of current sales conditions has been […]
The ECB’s Balance Sheet Is Now The Size Of Japan’s GDP
Yesterday was a landmark day for the ECB. First, the central bank disclosed that its CSPP, or corporate bond, holdings rose above €100Bn for the first time. As DB’s Jim Reids notes this morning, to put things in perspective, a similar market cap company would be the 18th largest in the Stoxx 600 and 42nd […]
Get Rich Slowly
“The people who have gotten rich quickly are also the ones who got poor quickly.” – John Templeton A Forbes article of July 1974 profiled John Templeton and highlighted some of the wisdom he implemented in his investment process. The article touched on his discipline of consistently praying to God “for wisdom and clear thinking” at the start […]
The Road To Financialization With Charles Hugh Smith
How we got to where we are today? A discussion of the chronology of US & Global Monetary Events regarding the Evolution of Financialization in America. Video Length: 00:50:26
Will Kinder Morgan Keep On Drilling Away?
Photo Credit: jasonwoodhead23 Kinder Morgan (KMI) is showing a 4% difference in Estimize and Wall Street estimates for EPS and a 2% difference between the two for revenue. Estimize comes in at $0.15 per share and Wall Street $0.14. For revenue, Estimize predicts $3.174B and the Street predicts $3.122B. KMI has a dividend yield of 2.56% and a P/E […]
Is The Grass Getting Greener?
There are so many game-changers on the horizon that sometimes it’s difficult to keep up. Artificial intelligence. Self-driving cars. Virtual reality. Breakthroughs in energy storage. All of these can upend the status quo and change our daily lives for the better. But cannabis, the plant from which marijuana is derived, is in a class by […]
Mark Mahaney’s Genius SNAP Target
Wall Street analysts are well-known shills, issuing only “Buy” and “Strong Buy” recommendations for their unsuspecting clients. The catastrophe SNAP is no exception, with analysts falling all over themselves to say what a great company it is; You may notice the fellow at the top of the list had a target price of $31, which is over 100% […]
