Analysis Topic: Stock & Financial Markets

The analysis published under this topic are as follows.

Sunday, November 24, 2013

Blowing Asset Price Bubbles With Paul Krugman / Stock-Markets / Liquidity Bubble

By: Mike_Whitney

America’s “highest profile economist” thinks we need more asset bubbles to battle negative real interest rates and persistent secular stagnation.

In a controversial post on his blogsite, New York Times columnist Paul Krugman argues that bubbles may be necessary to make up for insufficient demand, high unemployment, and sluggish growth.  Here’s the clip from his blog “The Conscience of a Liberal”:

Sunday, November 24, 2013

Why the Stock Market is Not a Bubble / Stock-Markets / Stock Markets 2013

By: Investment_U

Alexander Green writes: In the past week, there have been major stories in both The Washington Post and The Wall Street Journal – as well as a cover story in Barron’s – asking the same pointed question: Is this stock market a bubble?

And my column in Investment U last week raised a warning flag, too, about a bull market that’s starting to show its age. So it’s understandable that people are getting nervous.

Sunday, November 24, 2013

The QE Experiment is Failing… Will Stock Market Crash? / Stock-Markets / Financial Crash

By: Graham_Summers

We’ve long maintained that Japan is ground zero for the “QE works vs QE doesn’t work” debate.

The Fed’s economic models, and 99% of the economic models employed by Central Banks in general, believe that monetary easing can bring about an economic recovery. The primary argument for this crowd if QE has thus far failed to produce a recovery is that the QE efforts have not been big enough.

Saturday, November 23, 2013

Two Great Market Bubble Threats, One Great Investor Opportunity / Stock-Markets / Financial Markets 2013

By: DeepCaster_LLC

“I am very cautious on equities today, This market could easily have a big drop. Very simplistically put, a lot of the earnings are a mirage. They are not coming because the companies are well run but because of low interest rates.” 11/18/13 - Carl Icahn

Very smart Investor Carl Icahn is right to call “a lot of”  corporate earnings a “mirage” because by reducing borrowing costs via ongoing QE, The Fed has artificially elevated earnings.

Thus Corporate Earnings are yet another Dangerous Fed-created Asset Bubble.

Saturday, November 23, 2013

Fed Backed into a Corner on How to Exit its QE Program / Stock-Markets / Stock Markets 2013

By: Sy_Harding

The minutes of the Fed’s last FOMC meeting, released this week, confirm that the Fed believes it must begin to taper back its stimulus soon. At this point, the longer QE continues the greater the risk of asset bubbles forming, the bursting of which would destabilize the economy and make it even more difficult to exit.

Economists and analysts have been concerned from the beginning about how the Fed would be able to reverse the massive QE stimulus, which has been the major driving force of the anemic economic recovery and the powerful bull market in stocks, without also reversing the momentum of both.

Saturday, November 23, 2013

Europe Seethes With Populism / Stock-Markets / European Union

By: Andrew_McKillop

AGIT PROP AND THE EUROCRATS
Europe's top down, elitist, and very unpopular Federal Europe quest twists and turns – possibly in its death throes. The federalists in Brussels say they are facing down the dangerous threat of rising populism in Europe. For them, this is a direct menace to European democracy.

Friday, November 22, 2013

Fantasy Stocks for a Fantasy Market / Stock-Markets / Gambling

By: Casey_Research

By Doug French

They don't ring bells at the top, but when a company called Fantex Holdings plans to sell shares in professional athletes and possibly actors and musicians, a chill should race up the spine of investors.

You know this isn't your grandfather's market when a company pushing chicken wings (Buffalo Wild Wings) sells at over 40 times earnings. And when a company that dominates retail but doesn't make any money (Amazon) trades for $350 a share. And when a company that pumps old movies, TV shows, and a sliver of new content to subscribers trades at 280 times earnings (Netflix).

Friday, November 22, 2013

Stock Market On the Edge of a Trend Change / Stock-Markets / Stock Markets 2013

By: Anthony_Cherniawski

The final pattern continues to change in such a way as to allow this alternate wave pattern, if the November 18 high is exceeded. Allowing for that event, Minute Wave [v] may go to 1804.50 or slightly higher.

As it stands, it could be counted either as a possible wave 2 or [v] of C.

Friday, November 22, 2013

Stock Market Final High, Then the Drop? / Stock-Markets / Stocks Bear Market

By: Anthony_Cherniawski

There appears to be one more probe higher to complete Minor Wave C of Intermediate Wave (2).  I estimate that it may go as far as 1800.00, but may not be able to touch the hourly Cycle Top at 1800.70. 

This does not invalidate the comments regarding the reversal made in yesterday’s Closing Commentary.  If anything, it may push the ultimate low forward another day or two. 

Friday, November 22, 2013

Why 2013 Stock Market Santa Rally Will Be the Best in Years / Stock-Markets / Stock Markets 2013

By: Money_Morning

Kyle Anderson writes: The Dow Jones Industrial Average and S&P 500 typically see their largest gains of the year in December, thanks to a surge coined the "Santa Claus rally."

Since 1929, the S&P 500 has averaged a 1.5% return in December, with markets posting positive returns more than 70% of the time. The only other month with a 1.5% average return is July, with the remaining months' average gains ranging from -1.1% to 1.2%.

Friday, November 22, 2013

ECB Calling U.S. Out on Its QE Mistakes / Stock-Markets / Quantitative Easing

By: InvestmentContrarian

George Leong writes: Recently, European Central Bank (ECB) policymaker Jens Weidmann said the strategy of printing money was not the solution to the eurozone crisis. (Source: Carrel, P., “Printing money not the way out of crisis: ECB’s Weidmann,” Yahoo! Finance, November 20, 2013.) Ya, no joke!

Thursday, November 21, 2013

Is a Stocks Bear Market Right Around the Corner? / Stock-Markets / Stocks Bear Market

By: PhilStockWorld

Courtesy of Doug Short.

What the 2007 Top Can Tell Us about the Present

The most famous law of economics that everyone learns in Econ 101 is the law of supply and demand. Essentially, if there are more buyers than sellers then prices will go up until equilibrium is reached. Conversely, if there are more sellers than buyers prices will decline. The stock market is no different.

If there are more buyers of stocks than sellers, the stock market will rise and will continue to do so until either the ranks of willing buyers thins out and/or the ranks of sellers grows. When equilibrium is reached between buyers and sellers a market begins to stall. When you have a continued stream of sellers dumping their holdings, a bear market ensues.

Thursday, November 21, 2013

Uncle Sam Is the World's Smartest Trader / Stock-Markets / Investing 2013

By: Money_Morning

Robert Hsu writes: It's interesting that an investor in the "communist" Peoples' Republic of China can make millions tax-free... while investors in the United States - the supposed bastion of free enterprise and capitalism - have to pay, in some cases, a near-50% tax on investment gains.

If trading and investing is all about weighing risk and reward, then the tax code itself makes Uncle Sam the ultimate trader. He gets a nice chunk of your reward, even as he avoids your risk.

Thursday, November 21, 2013

Fed Minutes Triggered Stock Market Wash and Rinse / Stock-Markets / Stock Markets 2013

By: Jesse

The market was clicking along, buoyed by weak economic news, until the Fed minutes from a month ago came out, and traders hit the markets on QE taper thoughts, despite what Chairman Ben said yesterday.

I think the corruption of some members of the Fed is unfortunate but inevitable, and sometimes barely hidden by the fig leaf of plausible deniability and the 'scientific objectivity' of economics.

Thursday, November 21, 2013

Fed Minutes Bring The Stock Markets Lower... / Stock-Markets / Stock Markets 2013

By: Jack_Steiman

And that's not a bad thing at all. It wasn't a crushing blow lower, but it was a nice, solid move lower as the market used whatever it could in terms of an excuse to sell things off a bit. Mr. Bernanke spoke about keeping rates low basically forever, but some talk of tapering sooner than later, especially through the foreign banks, gave the market an excuse to sell lower.

Wednesday, November 20, 2013

Fed on Asset Prices and QE Tapering Next Month / Stock-Markets / US Federal Reserve Bank

By: Bloomberg

St. Louis Federal Reserve president, James Bullard, sat down with Bloomberg Television's Erik Schatzker this morning live from Bloomberg's The Year Ahead: 2014 conference in Chicago and said:

• Taper is 'on the table' for the central bank's next policy meeting and a strong jobs report would increase Dec. Taper chance.
• Says QE as effective as it's ever been and doesn't buy argument that QE has diminishing returns
• Fed seeks to push people into riskier assets
• Fed doesn't directly target asset prices

Wednesday, November 20, 2013

Why the Volcker Rule Is Now 3x Longer / Stock-Markets / Financial Markets 2013

By: Money_Morning

Shah Gilani writes: Let’s talk about the so-called Volcker Rule.

When the Dodd-Frank Act was signed into law in 2010 – the bank-busting, save the system, “we’ll never again have a financial meltdown that could destroy the world” legislation – it was more of an outline.

Wednesday, November 20, 2013

Stock Market Rally - If It Looks Like a Bubble and Acts Like a Bubble… / Stock-Markets / Liquidity Bubble

By: DailyGainsLetter

John Paul Whitefoot writes: Maybe I’m reading into the economy too much, but the current state of the U.S. economy and Wall Street isn’t adding up. The vast majority of people don’t think we’re in a bubble, including Federal Reserve chair nominee Janet Yellen. Granted, you can only really point to a bubble in retrospect, but still, it certainly looks and feels like we are in one.

Tuesday, November 19, 2013

Are Market Bubbles Caused by Psychological Problems? / Stock-Markets / Trader Psychology

By: Frank_Shostak

According to the popular way of thinking, bubbles are an important cause of economic recessions. The main question posed by experts is how one knows when a bubble is forming. It is held that if the central bankers knew the answer to this question they might be able to prevent bubble formations and thus prevent recessions.

Tuesday, November 19, 2013

German DAX Stocks Index Analysis / Stock-Markets / Germany

By: Ed_Carlson

Germany’s DAX index is the equivalent to America’s Dow Jones industrial index. Both indices are composed of 30 blue-chip issues.  As of Friday, the DAX has scored a six-week winning streak ending the week above 9,000 for the first time in its 25-year history.