Category: Financial Markets 2013
The analysis published under this category are as follows.Saturday, April 06, 2013
Riding the Big Profits Kahuna for How Much Longer? / Stock-Markets / Financial Markets 2013
Indeed, the Equities and Bond Markets have been riding The Big Kahuna of Fed, ECB, Bank of England (and now the Bank of Japan’s) Q.E. et al. for several Years Now.
But for how much longer can Investors expect to ride these Market Boosting Central Bank Injections and other Interventions before Disaster strikes and the use of QE reveals itself to be clearly Counter Productive.
Friday, April 05, 2013
Greece vs Iceland Unemployment - The Specter of Things to Come / Stock-Markets / Financial Markets 2013
The road to ruin is on plain display and the playbook is easily seen at this juncture. Let's take a look at how that playbook will unfold. Contrary to popular outrage of the SOLUTION being IMPOSED it is the correct one once the insured depositors where PROTECTED. In this edition the elites suffered FIRST followed by the private sector depositors who foolishly believed false BALANCE sheets which were POLITICALLY CORRECT but PRACTICALLY incorrect fictions approved by fiduciarily (regulations and regulators allowed ONGOING insolvent operations rather than protect the public by ending and prohibiting them) challenged governments (work for the banks and crony capitalists not for the public at large).
Read full article... Read full article...
Wednesday, April 03, 2013
Ignore Cyprus at Your Own Risk / Stock-Markets / Financial Markets 2013
By Louis James: Archimedes once said that if he had a lever long enough and a place to stand, he could move the world. Today, the half-Greek island of Cyprus appears to be the fulcrum, and the long arm of the EU may be the lever that heaves the entire world over the edge of the abyss.
As Dennis Miller so eloquently pointed out in a recent Casey Daily Dispatch, most Americans would not be directly affected if North Dakota decided to seize citizens' money in order to pay its bills, but all Americans would be deeply disturbed by such an action. The principle of the matter couldn't be clearer; outright theft is wrong. But it'd probably be fear, not principle, that would have people heading for their banks in droves to withdraw cash as fast as possible.
Read full article... Read full article...
Tuesday, April 02, 2013
Stockman Warns Fed is Off the Deep End / Stock-Markets / Financial Markets 2013
David Stockman, former director of the Office of Management and Budget, told Tom Keene on "Bloomberg Surveillance" yesterday that the Federal Reserve is "off the deep end with this money printing, which is dramatically distorting and deforming the financial markets."
On Glenn Hubbard, Stockman said, "He is a brilliant guy who told Bush to cut taxes in 2001, cut taxes in 2003, oh, why you are at it, go have two unfinanced wars and don't worry about the deficit because it doesn't matter. This is the kind of advice Republicans are getting from the likes of Professor Hubbard, and it is no wonder that we are heading towards national bankruptcy. It has got to stop."
Read full article... Read full article...
Tuesday, April 02, 2013
Stock Market and the Ongoing Death of the Euro / Stock-Markets / Financial Markets 2013
1929 in slow motion
It is hard I am sure for Americans to fully comprehend the disaster that played out in the recent Cypriot Euro debacle.
To get a feel for the panic that was swirling about in Europe the week before last I include a quote from the Irish Independent of 22nd March 2013:
Read full article... Read full article...
Friday, March 29, 2013
Will Europe Sink Stocks and Boost Gold? / Stock-Markets / Financial Markets 2013
Wall Street expressed relieved that Europe's central bank agreed to release 10 billion euros ($13 billion) of emergency rescue funds for Cyprus. In exchange, Cyprus agreed to shrink its banking industry, cut its budget, implement economic reforms and privatize some state assets. Although the measures are expected to result in heavy losses for Cyprus' bondholders and large depositors, Wall Street was just glad to dodge another bullet.
Read full article... Read full article...
Thursday, March 28, 2013
Bob Prechter - How Market Losers Think and How to Stop Doing It / Stock-Markets / Financial Markets 2013
Dear Investor,
Some of the greatest problem solvers in history -- Albert Einstein, for example -- know that the secret to solving complex problems requires simplicity.
Read full article... Read full article...
Thursday, March 28, 2013
Gold vs. S&P 500 – Where is the Value? / Stock-Markets / Financial Markets 2013
This past week we received the final 4th Quarter GDP number which came in at 0.39%. The total 4th Quarter growth was terrible, plain and simple. Based on the performance in the equity markets that we have seen thus far in the 1st Quarter of 2013 investors would expect strong GDP growth. However, the only thing spurring stock market growth is the constant humming of Ben Bernanke’s printing press.
The real economy and the stock market are no longer strongly correlated. Essentially, they are meaningless. How do you evaluate risk when Treasury linked interest rates are artificially being held down by the Federal Reserve? How do you evaluate earnings growth estimates when most government based statistics are manipulated or “smoothed” to perfection?
Read full article... Read full article...
Saturday, March 23, 2013
Cyprus Crisis Investor Opportunity and Risk Rockets / Stock-Markets / Financial Markets 2013
A Climacteric began in the International Economy and Markets last week. Its Ramifications have not been widely acknowledged. It provides Great Opportunity and Great Risk. Moreover, this Mega-Development signaled that a Great Opportunity Window is beginning to close. And it signaled loud and clear that The Great Danger of which we have earlier written is approaching ever nearer.
The Opportunity which may well not arise again in our lifetimes. So it is important to carefully consider the implications of that Mega-Development for citizens, savers, and investors around the entire World, including the Great Risks to which it also gives rise.
Read full article... Read full article...
Saturday, March 23, 2013
Cyprus Crisis, Stock Market and Platinum / Stock-Markets / Financial Markets 2013
Cyprus lawmakers this week rejected a controversial euro bailout package, which would have set a dangerous precedent by taxing ordinary bank depositors to pay part of the bill. How will it imply the stock market? Will it make platinum any less appealing - especially relative to gold? Let's take a look.
The genie has been let out of the bottle. The fact that a democratic government could propose such a plan is a game changer. Ordinary people everywhere now know that putting their savings into insured bank accounts is no longer a guarantee of a good night's sleep. When governments are in desperate financial straits they will not hesitate to plunder the accounts of ordinary savers and investors. And that make gold all the more attractive.
Read full article... Read full article...
Wednesday, March 20, 2013
Stock, Commodity and Euro Market Cycles / Stock-Markets / Financial Markets 2013
The Euro is losing its battle with its Head & Shoulders neckline and mid-Cycle support which temporarily slowed its decline. It appears that gravity may take over at any time now, since both supports appear to have been violated. The real surprise is that it has held on for so long despite the erosion in the pattern. It is time for a steeper decline to follow.
Read full article... Read full article...
Monday, March 18, 2013
Global Economy and Financial System - Let’s be Honest … / Stock-Markets / Financial Markets 2013
The current situation within the world economy may be summarised as follows:
- USA:
- There are 47 million people (>15% of the entire US population) who rely on Food Stamps to make ends meet.
- The participation rate (percentage of working age people who are looking for work) has fallen by 2.5% from 66% in 2008 (when the Global Financial Crisis manifested) to 63.5%
Saturday, March 16, 2013
Are You Ready For Stock Market Flash Crash Next Week? / Stock-Markets / Financial Markets 2013
VIX “threw under” its Ending Diagonal this week in what may be its Master Cycle low. This would be the lowest reading for the VIX since December 2006, when it reached 9.39. There was no Ending Diagonal at the 2006 low, however. Diagonals imply an “immediate” and complete retracement from the peak, which was the November 2008 high.
Read full article... Read full article...
Monday, March 11, 2013
Investor Warning: Job Creation Data Fuelled by Cheap Money / Stock-Markets / Financial Markets 2013
Sasha Cekerevac writes: The latest monthly employment data had a positive headline; a stronger than expected job creation number. However, looking at the core information, there remain significant concerns regarding the U.S. economic recovery and job creation specifically.
For February, job creation for non-farm related payrolls totaled 236,000. This number was far higher than expected, giving a boost to the stock market. (Source: “Employment situation summary,” Bureau of Labor Statistics, March 8, 2013, accessed March 8, 2013.)
Read full article... Read full article...
Saturday, March 09, 2013
An Investor's Guide to X-treme Monetary and Fiscal Conditions / Stock-Markets / Financial Markets 2013
I landed in Buenos Aires early this morning and have a day layover before heading off to Cafayate; but it is time to send you this weekend’s Outside the Box, and what a wonderful, powerful piece it is. I read John Hussman’s latest on the way down and had to review it several times. There is just so much meat here. And more than his usual quota of those wonderful graphs he comes up with. Did you know there is a 94% correlation between the price of beer in Iceland and the S&P 500? This is a teaching moment we must heed!
Read full article... Read full article...
Thursday, March 07, 2013
Gold, The Dow, Dollar And Deflation / Stock-Markets / Financial Markets 2013
IS GOLD POISED TO REGAIN LOST GROUND?
It is relatively easy to summarize the current global macro scene: private banks are recapitalizing using very low cost funds from central banks, which go on Quantitatively Easing but less so than previous. Interest rates are either not continuing to fall, or are slowly rising. Consumers and business borrowers are deleveraging, trying to pay down debt or not incurring new debt. Unemployment rates are massive in most OECD countries. Several major industries, from cellphones and carmakers to the construction sector face problems of market saturation, slow demand growth and declining prices. Despite a quick glance at the following table (below) from Gold Core possibly supporting the argument that gold price depreciation in dollar terms is overdone and that fiat money depreciation, devaluation or debasement "can only" make gold prices grow - Gold Core suggests price "highs over $2400 oz in coming months" - an alternate reading of the global macro picture says this is very unlikely.
Thursday, March 07, 2013
Gold Pivot Points and the Dow's Future / Stock-Markets / Financial Markets 2013
The Dow reached an all-time high of 14,253 on Tuesday and naturally, the financial press drew lots of attention to this fact. Conspicuously absent from the media attention, however, was a complete lack of enthusiasm. The perma-bull cheering section was eerily quiet as widespread apathy was evident. This continues a trend of muted investor psychology which, from a contrarian standpoint, is refreshing given how far the market has come since November.
Read full article... Read full article...
Wednesday, March 06, 2013
Stock Market Final Spike Top? / Stock-Markets / Financial Markets 2013
SPX is preparing for what may be its final probe at the Broadening Top trendline before a reversal today. At the moment,, the top appears to be near 1547.00. If the top comes in the first hour, it may be shorter. Later in the day, a bit higher.
Today is day 275 in the aging Master Cycle. The Master Cycle low may come rather quickly. There is only 1 nest of 37,000 SPX put contracts at 1450.00, so there may be little fear of a decline into options week.
Read full article... Read full article...
Monday, March 04, 2013
The State of the Global Markets Online Conference / News_Letter / Financial Markets 2013
The Market Oracle NewsletterFebruary 13th , 2013 Issue # 5 Vol. 7
Read full article... Read full article...
Monday, March 04, 2013
The State of the Global Financial and Commodity Markets 2013 / News_Letter / Financial Markets 2013
The Market Oracle NewsletterJanuary 16th , 2013 Issue # 2 Vol. 7
Read full article... Read full article...