Daily Archives: April 10, 2013

Bonds and stocks soaring: only one can be right

Good article summarizing current economic trends: “Current stock market action and the global financial system’s reliance on central bank support reminds me of rock legend Bachman Turner Overdrive’s 1974 hit “You Ain’t Seen Nothin’ Yet.” …But here’s what we have … Continue reading

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Where have all the buyers gone?

As the long always crowd assures us that this is a true secular bull market in stocks and that Central Bank pumping has put a new permanent put under asset prices, we just have one small question: if this is … Continue reading

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Zero real growth for 5 more years?

Historically real yields have equated to real growth rates in the US economy of about 2%. Always tied into economic growth rates over the past 100 years, annual corporate earnings growth has averaged 1.5%, slightly less than the overall economy. … Continue reading

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Fed out of tools and ideas to try and stimulate the economy

Former Dallas Fed VP Gerald O’Driscoll discusses Federal Reserve Chairman Ben Bernanke’s comments about monetary policy and the state of the U.S. banking system which remains dangerously pumped up on historically high leverage. Here is a direct link.

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Reality: negative earnings trends don’t support euphoric US stock prices

The gap between an extremely over-bought, over-valued US stock market and a continued negative trend in net earnings revisions for the underlying corporations is the source of large capital risk. When numbers don’t add up, they never will. Here is … Continue reading

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More funny numbers out of China

Last night brought more suspect economic numbers out of China. Commodities (including gold) are once more voting ‘foul’ selling off on the news. Here is a direct link.

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