US Consumer Spending & Income Growth Slow In February
US personal income and spending ticked higher in February, but the year-over-year growth trend slowed on both counts, the Bureau of Economic Analysisreports. There’s still a positive trend in the numbers—enough to keep the economy expanding for the near-term future, but today’s numbers leave little room for arguing that growth is set to accelerate after what’s […]
Chinese Seizing Golden Opportunity; Gold Demand Surging
Generally speaking, rising prices tend to temper demand, but when it comes to gold in China, the recent price rally has created the opposite effect. As the Wall Street Journal put it, “Chinese investors see a golden opportunity.” Demand for gold has surged in China over the last several weeks, during a period generally considered out of […]
Core PCE Inflation Disappoints +0.1% M/m
The Fed can remain in no rush to raise rates: its favorite inflation measure is not going anywhere fast: only 0.1% m/m. The upside is that y/y, the figure remains unchanged at 1.7%. This is still below the 2% target but not too terrible. Personal income rises 0.2%, slightly better than expected, and personal spending […]
Brexit Impact On British Pound Sterling
Brexit impact on value of British pound sterling: With a potential “Brexit” approaching, Goldman Sachs says regardless of the outcome the British pound sterling will be a “fashionable” and “actionable” currency in 2016. This isn’t the first time this has happened, and a price pattern has emerged over time, with such a “fashionable” event occurring five times since the 2008 financial […]
Dollar Continues Strong, Awaits Fed Comments
The dollar edged up against the euro and yen on Monday continuing its rebound last week following hints from U.S. Federal Reserve officials that an interest rate hike could be introduced sooner than anticipated. The coming week should provide investors with a series of indicators that will help gauge whether the U.S. economy is robust […]
Weekly Market Outlook – At A Crucial Juncture
Weekly Market Outlook – March 28, 2016 After five straight weeks of gains, the market finally buckled. It wasn’t a big pullback last week – only 0.6% – but all big trends start out with that first small step. We at least have to acknowledge the possibility that last week’s weakness may be the beginning […]
Wilshire 5000 Attempting To Accomplish Something Rare
This picture caught my eye, as some think certain things are hard to accomplish, due to age. Speaking of “age and accomplishments,” the chart below of the Wilshire 5000 came to my mind. CLICK ON CHART TO ENLARGE As mentioned above, this very broad index remains inside of 5-year rising channel (A), as the 5-year trend […]
China Beige Book Reveals Employment Plunges To 4-Year Low, Capex Worst In History
Back in December, New York-based China Beige Book International released what they called a “disturbing” set of data that pointed to pronounced weakness in the Chinese economy. “National sales revenue, volumes, output, prices, profits, hiring, borrowing, and capital expenditure were all weaker than the prior three months,” the firm – whose CBB is modeled on the Fed’s […]
Market Cap To GDP: An Increase In The Buffett Valuation Indicator
Market Cap to GDP is a long-term valuation indicator that has become popular in recent years, thanks to Warren Buffett. Back in 2001 he remarked in a Fortune Magazine interview that “it is probably the best single measure of where valuations stand at any given moment.” The four valuation indicators we track in our monthly valuation overview offer a […]
Morning Call For March 28, 2016
OVERNIGHT MARKETS AND NEWS Jun E-mini S&Ps (ESM16 +0.23%) are up +0.28% after last Friday’s data showed the U.S. economy expanded more than expected in Q1. European markets are closed for Easter Monday. Also, May crude is up +0.51%, which is giving a boost to energy producing stocks. San Francisco Fed President Williams said that global […]
