Should Inflation Be Defined Only As Price Increases?
Image Source: Pixabay If inflation is a general increase in prices, as most experts hold, then why is it regarded as bad news? What kind of damage does it do? Most experts are of the view that inflation causes speculative buying, which generates waste. Inflation, it is maintained, also erodes the real incomes of low-income earners […]
In December, The Theme For New Homes Was “Steady As She Goes” In Sales, Price, And Inventory Trends
To reiterate my theme from the past few months, Ive been looking at new and existing home sales more in tandem, with a rebalancing of the market in mind. For that to happen we need price to abate in existing homes, to compete with new houses where prices have been slightly declining for over a […]
5Y Auction Stops Thorugh With Largest Direct Award In 12 Years
90 minutes after a mediocre 2Y auction hit the tape, the Treasury sold $70BN in 5Y paper in the day’s second auction to start the Fed-abbreviated week, which also sees a 7Y sale tomorrow before the FOMC on Wednesday.The auction stopped at a high yield of 4.330% which was down from 4.478% in December, and […]
New Home Sales Beat Expectations, But Supply & Demand Dynamics Remain The Same
New home sales for December came in at an annualized rate of 698K (a gain of 24K for the month or +3.4%). This was better than the 669K that the street was expecting. New home sales grew +6.7% in 2024, but remain about 32% below the October 2020 cycle high.The monthly gains were led by […]
Why Manufacturing Continues To Weigh On Eurozone Growth: It’s The Inventory Cycle, Stupid
Inventories gone wildAdmittedly, inventories may not seem like the most exciting topic at first glance. However, the past few years have been marked by multiple shocks, distorting the traditional inventory management model. After decades of reducing inventory-to-sales ratios in an increasingly integrated world economy (“The world is flat,” remember that one?), the post-pandemic supply chain […]
Speculators Raise New Zealand Dollar Bets After Drop To All-Time Low
Here are the latest charts and statistics for the Commitment of Traders (COT) data published by the Commodities Futures Trading Commission (CFTC).The latest Commitment of Traders (COT) data is updated through Tuesday January 21st and shows a quick view of how large market participants (for-profit speculators and for-profit speculators) were positioned in the futures markets. All currency positions are in direct relation to […]
Energy Stocks Hit Hard As DeepSeek Shows AI Energy Demand Can Slow
Image courtesy of 123rf.com The recent surge of Chinese AI startup DeepSeek to the top of Apple’s App Store in the US has sent ripples through the tech industry, challenging the dominance of established players like ChatGPT. This shift has prompted a reexamination of the sector’s landscape, impacting the stock prices of major tech companies and also power […]
Biotech And Healthcare Stocks Poised For Gains Ahead
Image Source: Unsplash Looks Good for Biotech Stocks-Why we are bullish. Technicals and Relative Strength (RSI) are lined up for bullish trades and good momentum. Biopharmaceuticals offer good value and new themes such as obesity and neuroscience. Innovation and M&A will drive SMID caps higher. We are calling a trading bottom in healthcare stocks. The XLV bounced […]
All-Time High S&P 500 – Is It The Selling Opp I Forecast?
Image Source: Pexels Welcome back to a new week. I rooted for the Commanders. They lost. I rooted harder for the Bills. They lost. I hate the Eagles and the Chiefs. I rooted for the UCONN men. They lost. And I was so looking forward to visiting clients in Florida today where it will be 80 […]
Stocks Fall Sharply Alongside Tech; VIX Soars
Stocks are lower today amid a global tech selloff. Unsurprisingly, the tech-heavy Nasdaq Composite Index (IXIC) is plummeting, down nearly 550 points and headed for its worst loss since early August. The Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are also in the red, the latter on track for its worst loss since Oct. 31, […]
