Thursday Humor? Bank Of Japan Asks Banks ‘What’ Caused USD/JPY Spike
According to sources, Reuters reports that The Bank of Japan is asking market-participants about the cause of this morning’s sudden 150 pip vertical rip in USD/JPY. Hhmmm, we wonder? Given BoJ’s “coincident” intervention in mid-Feb (marking the market bottom), we wonder who this mysterious knife-catcher is? This happened in Mid-Fed: for the first time since 2011 the BOJ intervened directly in […]
Oil’s Ups And Downs
The price of oil rose sharply last week to nearly $40 a barrel, presumably based on two pieces of information: falling rig counts in the United States and the announcement that major international oil exporters Saudi Arabia, Russia, and Venezuela would freeze oil production if other oil producing countries agreed to the same. The rally seemed genuine […]
Gold Flows East – Silver Follows
Louis Cammarosano, Smaulgld, and I sat down to discuss the flow of gold and silver as the path East is well worn at this point. While the West creates war, the East creates business. All the talking media idiots constantly complain about how China’s GDP has “dropped” down to around 6%. Did anyone ever factor in that maybe, […]
E The Daily Shot And Data – March 17, 2016
Greetings, We start with the United States where the Federal Reserve struck a dovish tone. While nobody expected a rate hike at this FOMC meeting, many viewed the latest pickup in inflation (discussed later) as potentially prompting the Fed to begin preparing the markets for more rate increases shortly. That didn’t seem to be the […]
Your Strategy Will Sometimes Lag And That’s Ok
Barron’s featured an ETF Roundtable that focused on smart beta funds. The actual discussion wasn’t all that interesting but there was an important general point made about investment strategies. Gray: Value investing is driven in part by behavioral biases—otherwise, why wouldn’t everyone just be Warren Buffett and buy cheap stocks and hold them? They don’t because if […]
Coca-Cola Stock Will Disappoint Investors In The Next Few Years
Coca Cola (NYSE:KO) presently has a price to earnings ratio of 27.12 which is more than 7 points off Coca-Cola’s 5-year average. In fact, you have to go all the way back to December 2007 to find the same earnings multiple when Coca-Cola stock was trading just north of $30 a share. It’s human nature to […]
WTI Crude Oil And Natural Gas Forecast – March 17, 2016
WTI Crude Oil The WTI Crude Oil market shot higher during the course of the day on Wednesday, mainly in reaction to the Federal Reserve talking about only having two interest-rate hikes during the course of the year as opposed to for as originally anticipated. This drove down the value the US dollar, and by […]
Fed’s Back-Pedaling Sinks Dollar
In the wake of the Fed’s back-pedaling rhetoric, the US Dollar fell against most major currencies during today’s session. The greenback hit a 3-week trough versus the Japanese Yen, and lost nearly .50% against the Euro and more than 1% versus the Aussie Dollar. Yesterday, the Federal Reserve announced no change to its monetary policy […]
Update: Bottom Fishing For Value Today – March 17, 2016
Bottom fishing for value by Chris Lau Bottom fishing large capitalization companies benefited the Bottom Fishing for Value Strategy in the last week. Wal-Mart (WMT), Boeing (BA), and Intel (INTC) had a positive ROI to-date of 12.2 percent, 26.8 percent, and 21.3 percent, respectively. Wal-Mart recouped nearly all of the post-earnings selloff from October 2015, […]
Another Fed “Policy Error”? Dollar And Yields Tumble, Stocks Slide, Gold Jumps
Yesterday when summarizing the Fed’s action we said that in its latest dovish announcement which has sent the USD to a five month low, the Fed clearly sided with China which desperately wants a weaker dollar to which it is pegged (reflected promptly in the Yuan’s stronger fixing overnight) at the expense of Europe and […]
