The Collapse Of The Middle Class In 20 Major U.S. Cities
When future historians look back at the beginning of the 21st century, they’ll note that we grappled with many big issues. They’ll write about the battle between nationalism and globalism, soaring global debt, a dysfunctional healthcare system, societal concerns around automation and AI, and pushback on immigration. They will also note the growing number of […]
These 11 Oil Drillers Still Have Maxed Out Credit Lines, Despite Energy HY Recovery
The first signs of financial distress often surface when CFO’s start to play games with their balance sheet. First, comes the ballooning of current liabilities as payable balances are stretched out to the max to preserve cash. Next, the most astute vendors catch on fairly quickly to the gamesmanship and move to COD terms for […]
Watch-List For Bearish Trade Setups
My bearish watch list for the week: How many people were anticipating a UK Snap Election prior to today? Yeah, nobody. It is quite amazing how many things, of late, the market can find to freak out about. Brexit was last year, it is happening! Apparently the algos have yet to get over it. They […]
Global Asset Allocation Update – Tuesday, April 18
There is no change to the risk budget this month. For the moderate risk investor, the allocation between risk assets and bonds is unchanged at 50/50. The performance of markets in the first quarter of the year was a bit schizophrenic. Stocks performed well which one might interpret as a reflection of improving economic growth […]
Kansas City Fed Says Rate Hikes “Necessary” As Weakness Is “Transient”: June Rate Hike Odds Sink
Esther George, president and chief executive officer of the Kansas City Fed says Continuing With Rate Rises Is ‘Necessary’. She also claims weak economic data is “transient”. Meanwhile, the market increasingly believes the economy is weakening and rate hikes are less likely. Meanwhile, the market increasingly believes the economy is weakening and rate hikes are less likely. […]
Huge Decline In Peru’s Silver Production Suggests Future Supply At Risk
The Peru Ministry of Energy and Mining just released their silver production data for February, and it was a whopper to the downside. Actually, I was quite surprised to see how much Peru’s silver production declined versus the same month last year. Also, Peru’s gold February production took a similar big hit. According to the […]
EC False Narratives
A few important things I’ve learned over the years: 1) The prevailing narrative always follows price. 2) Prices can be very wrong at times (the market is NOT always right). 3) When prices are wrong, narratives become nonsense. 4) Chasing nonsense (false narrative) is not an effective investing strategy. Just before midnight on election night last November, the […]
Breakout In 3D Printing Stock Stratasys
The long awaited breakout in the 3D printing space is there. Today, Stratasys is leading the sector higher, with a rally of more than 10 percent intraday on higher than average trading volume. Interestingly, investment bank Piper Jaffray upgraded 3D printing stocks Stratasys from neutral to overweight. That is quite drastic. Their first upside target is $28, which, […]
U.S. Cereal Company, Post Holdings Inc., Buying Weetabix Ltd. For $1.8 Billion
Written by BNN.ca U.S. cereal company Post Holdings Inc. (NYSE: POST) has agreed to buy Weetabix Ltd. from Bright Food Group Co. of China for 1.4 billion pounds (US$1.8 billion), adding the British breakfast staple to a portfolio that includes Grape Nuts and Honey Bunches of Oats. The deal for the maker of oval-shaped cereal bricks gives Post a […]
EUR/USD: Into The First Round Of French Elections & 1 Week From Now
The first round of the French elections is held on April 23rd and the stakes are high. Here are our four scenarios for the elections. Here is the view from SocGen: Societe Generale FX Strategy Research notes that the latest polls ahead of the French elections confirm the first round will be close with a 5% range […]
