EC May The Phillips Curve Rest In Peace
In 1958, economist William Phillips claimed there was a historical inverse relationship between the rate of unemployment and the corresponding rate of inflation. His conclusion was that full employment (whatever that means) was inflationary. He illustrated his claim through a chart referred to as the Phillips Curve. The 1970’s stagflation outbreak in the U.S, which […]
E The Daily Shot And Data – March 21, 2016
Greetings, We start with Russia where the central bank did not cut rates in spite of falling inflation. Given the persistent economic weakness, the rationale for such policy is unclear other than an attempt to strengthen the ruble further. This is certainly a hawkish stance by the Bank of Russia. Source: Natixis Driven by firmer […]
Dollar Reversal
“Davidson” submits: My call of 18mos ago that the US$ would reverse once this Momentum Trade had run its course was based on understanding Free Markets. One cannot time these things, but one can understand then qualitatively. Many losses in energy related and Intl issues will be reversed by the current weakening in the US$. […]
Silver Prices Are Trying To Carve Out A Short-Term Low
The technical outlook from Friday still stands. On Friday we stated that the overall trend is bullish above the March 16 low of $15.21 and traders may see a pullback to the $15.57 – $15.81 range as an opportunity to add to their bullish exposure. Today we are seeing signs of this scenario playing out. The $15.57 – $15.81 range was […]
Greek Banks Admit To Charging For Converting Large Bills
Note: How nice of them to be ‘honest’ for once. However, like the writer says, this is a clever way to ‘call in the money’. The Greeks are much smarter than Americans. The Greeks fear confiscation. The only negative aspect of this type of move likely to be noticed in America is the inconvenience of […]
Bursa Malaysia Changes Direction
Dictated by the simple fact that emerging markets are outperforming U.S. equities since January, we’re continuing our world tour with this research. We don’t dismiss that U.S. equities have been on quite a rally since their early February low. However, as impressive as that’s been, emerging markets have been even more so. Today, we’re taking a look at Malaysia […]
E “Economist” In Me Says This Is A Threat To Gilead
New York Attorney General Eric Schneiderman recently launched an investigation into 16 health insurance companies’ coverage of HCV and their restrictions. I concluded that [i] by offering more access to high-priced HCV drugs, insurers might incur higher benefit pay outs and [ii] insurers could potentially form coalitions to negotiate steeper discounts from Gilead GILD and […]
Understanding Flow Of Funds Accounting
After the post a few weeks ago where I showed that Post-Keynesian Stock Flow Consistent modeling has become very popular on Wall Street I got a ton of emails asking for more details on this approach. So, here’s a short description and a few good links for you to explore if you’d like. Stock flow consistent modeling is […]
Here’s What To Do About Sherwin-Williams’ Acquisition Of Valspar
Sherwin-Williams (SHW) is the leader in the North American coatings (paint) industry. The company is the 3rd largest coatings corporation globally. Source: Source: Sherwin-Williams Credit Suisse Presentation, slide 5 The company is not an overnight success. Sherwin-Williams was founded in 1866. Sherwin-Williams’ management has a long history of rewarding shareholders with rising dividend payments. The company has paid increasing dividends […]
EUR/USD And GBP/USD Forecast – March 21, 2016
EUR/USD The EUR/USD pair pulled back during the course of the session on Friday, showing the 1.13 level as being overly exhaustive. This is a market that should continue to go higher given enough time, but at this point in time we are waiting to see whether or not we can find a supportive candle […]
