Dow Theory Update…
The Dow Jones Industrial Average has remained range bound since Thanksgiving and it currently trades near the top of this trading range. However in the middle of all of this there are some divergences that are worth noting. As both of the other components that make up the Dow Theory (Transports and Utilities) trade near […]
Ten Ideas To Save The Economy – Step 3: Expand Social Security
<< Read Step 1: Making The Economy Work For The Many, Not The Few – Step 1: Raise The Minimum Wage << Read Step 2: Making The Economy Work For The Many, Not The Few – Step 2: Make Work Family Friendly America is on the cusp of a retirement crisis. Millions of Americans are already […]
Producer Price Index For Final Demand Hits A New Low
Today’s release of the March Producer Price Index (PPI) for Final Demand came in at -0.4% month-over-month seasonally adjusted. That follows the previous month’s 0.2% increase. Core Final Demand (less food and energy) came in at -0.2% month-over-month following a 0.2% change the month before.The Investing.com forecasts were for 0.2% headline and 0.1% core. The year-over-year change […]
E Puma Biotechnology Falls As It Posts Mediocre Breast Cancer Results
Shares of Puma Biotechnology (PBYI) are down 19% after the company reported mediocre breast cancer results from a poster set to be presented at the American Society of Clinical Oncology — ASCO –meeting being held May 29 to June 2, 2015 in Chicago. Puma’s drug known as Neratinib is in a phase 3 trial treating […]
The Next Gold Bull Market Starts Before October
I’m going out on a limb: I think the next bull phase in the gold market gets underway before October. Why? China. But not due to runaway demand… At an International Monetary Fund (IMF) forum last month, China’s central bank governor, Zhou Xiaochuan, made it clear he believes the renminbi is “ready for reserve status.” […]
If The Bond Market Crashes, It Will Look Like Every Other Crash
Tren Griffin posted A Dozen Things I’ve Learned From Julian Robertson About Investing. Number four was; Avoid big losses. That’s the way to really make money over the years. This has been a big point here over the years. If you can be somewhat close on the way up and avoid the full brunt of large declines […]
Are American Manufacturers Reshoring?
Are American companies reshoring after years of sending production offshore? It’s not that simple, according to Wharton professor Morris Cohen, “Is the Reshoring of U.S. Manufacturing a Myth?” Cohen confirms some of the points I made last year in Reshoring or Offshoring: U.S. Manufacturing Forecast 2015-2016. The interview is worth watching in its 24-minute entirety for […]
Producer Prices, Import/Export Prices Decline Again; Still Think The Fed Will Hike?
The Fed is struggling like mad to produce inflation, with little success on some fronts. Of course the Fed ignores asset bubbles in its measures. Import/Export Prices The Bloomberg Consensus range for export prices was 0.1%. The range for import prices was 0.4%. Economists were wildly off the mark on both estimates. Both prices declined. Export prices […]
3 Things: The Labor Hoarding Effect
The Claims Problem This morning initial jobless claims plunged to the lowest level in the last 42 years. The chart below shows the weekly claims as compared to the 4-week moving average. Surely, this must be a sign that the economy has turned the proverbial corner as full-employment has finally been obtained. Right? Maybe […]
EC Bond Math And The Elephant In The Room
What are you expecting from the bond portion of your portfolio over the next six years? 5%? 6%? 7%? These would all have been reasonable expectations in the past, but past is not prologue, especially when it comes to investing. Whatever number you were thinking of, it is likely too high. Why? The largest Bond […]
