Analysis Topic: Stock & Financial Markets
The analysis published under this topic are as follows.Thursday, June 27, 2013
Marc Faber Forecasts 30% Stock Market Crash, Says Buy Gold / Stock-Markets / Financial Crash
Dr. Marc Faber, the Swiss fund manager and publisher of the 'Gloom, Boom and Doom Report' always enjoys illuminating the Wall St. talking heads and displaying his awesome command of numbers, dates and predictions.
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Thursday, June 27, 2013
How to Profit From the Fed-Induced Stocks and Bonds Sell-off / Stock-Markets / Financial Markets 2013
Alexander Green writes: The markets have reeled in reaction to news that the Federal Reserve intends to end its $85 billion-a-month bond-buying program by the middle of next year.
Let’s take a look at why this is happening and how you should play it now.
For the past several years, Fed Chairman Ben Bernanke has helped goose the economy (and stock and bond markets) by keeping short-term rates near zero and – through the Fed’s bond-buying program – long-term rates artificially low.
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Thursday, June 27, 2013
Going Dark! Economic Cycles Point Downward, Stocks Bear Markets / Stock-Markets / Stocks Bear Market
Unsustainable trends can survive much longer than most people anticipate, but they do end when their “time is up” – at the culmination of their time cycles. Examples of these trends include deficit spending, exponential debt increases, overpriced bond markets, and unbacked paper currencies, to name a few. For perspective on how and when these trends could change direction, we analyzed more than 20 different cycles. They nearly unanimously point to tectonic shifts in the months and years ahead. We have been warned!
At this point, we have enough confirmation to accept that the precious metals crash – starting in April of 2013 – was the first warning of what is coming globally.
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Wednesday, June 26, 2013
Japan Nikkei Stock Market Today Parallels Dot-Com Bust - The Sock Puppet Kabuki / Stock-Markets / Japanese Stock Market
The Japanese stereotype of excessive courtesy is being confirmed by the actions of prime minster Shinzo Abe who is giving the world a free and timely lesson on the dangers of overly accommodative monetary policy. Whether or not we benefit from the tutorial (Japan will surely not) depends on our ability to understand what is currently happening there.
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Wednesday, June 26, 2013
US Dollar Holds the Key for Stocks and Gold / Stock-Markets / Financial Markets 2013
The weekly chart below (courtesy stockcharts.com) is significant for two reasons:
1. The US Dollar is “supposed” to move inversely to the gold price.
2. It is showing a broadening (megaphone) formation against a background of a collapsing gold price.
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Wednesday, June 26, 2013
Changes in the Chinese Economy That Will Alter Your Investment Strategy / Stock-Markets / Chinese Stock Market
Sasha Cekerevac writes: We are all aware that the global economy is still relatively stagnant, running below optimal gross domestic product (GDP) levels. Specifically, the Chinese economy is not only experiencing a slowdown in growth, but also a liquidity crunch.
One of my concerns regarding the Chinese economy over the past couple of years has been the rampant increase in credit and loose lending standards. Because the Chinese economy has become such an integral part of the global economy, if imbalances within that nation aren’t addressed, this will lead to further speculative boom-and-bust cycles.
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Wednesday, June 26, 2013
Stock Market Ready for Liquidation? / Stock-Markets / Stock Markets 2013
George Leong writes: I advise you to look at buying stocks—but not quite yet; the time for buying hasn’t arrived. Just like a fire or liquidation sale at a retailer, the best buying opportunity in the stock market is when the discounts are at their heaviest. We’re not at that point yet.
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Wednesday, June 26, 2013
5 Ways You'll Lose Money in the Next 5 years / Stock-Markets / Financial Markets 2013
Richard Moyer writes: We live in strange times. There are unimaginable amounts of money at stake, and someone is going to lose big, and that someone could be you. Here are the biggest risks that I see on the horizon.
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Tuesday, June 25, 2013
Warning China’s “Lehman” Moment Could Cause Another 2008 Financial Crisis / Stock-Markets / Credit Crisis 2013
The global Central Banks are in damage control mode.
The big story here is China, which is fast approaching its “Lehman” moment with interbank liquidity drying up rapidly and overnight rates are soaring.
As I’ve warned Private Wealth Advisory subscribers before, China’s shadow banking system equal to over $18 trillion (more than 200% of China’s GDP), so this could be the mother of all bubbles bursting.
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Tuesday, June 25, 2013
Kress Cycle Market Deflation Pressure Increases / Stock-Markets / Deflation
To many observers, deflation was a thing of the past in the wake of the QE3. The Fed’s asset purchases, which drove down bond yields to record lows, were thought to have tamed the global deflationary problem once and for all. What they didn’t count on was the floodtide of deflation breaking through the dikes and barriers carefully constructed by the world’s central banks.The increasing deflationary pressure is most visible in Europe and Asia but will soon wash up on U.S. shores in the near future. A general deflationary trend is already visible in equity markets in several major countries, a consequence of the final descent of the 120-year Kress cycle. As that cycle approaches its final bottom in late 2014 we can expect to see an increase in some of the problems we’re just starting to see right now in the global economy.
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Tuesday, June 25, 2013
Gold Miners, Natural Gas, SP500 Trades for July – Video / Stock-Markets / Financial Markets 2013
This video shows potential big money making trades for July for Gold stocks, natural gas and the stock market.
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Tuesday, June 25, 2013
China Stock Market 400-Point Flip-Flop / Stock-Markets / Stock Markets 2013
The worst is now past.
That's the word from an HSBC economist after the PBOC's Ling Tao assures the bank will keep money-market rates "within reasonable ranges." The People’s Bank of China has provided liquidity to some financial institutions to stabilize money market rates and will use short-term liquidity operation and standing lending facility tools to ensure steady markets, according to a statement posted to its website today. It also called on commercial banks to improve their liquidity management.
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Tuesday, June 25, 2013
Why the Stock Market Is Doomed / Stock-Markets / Stock Markets 2013
One of the myths of economics is that markets are rational. Theories are based on this assumption, and the belief that markets are rational fuels the argument against regulation. The market response to the Federal Reserve’s June 19 statement that it will taper off its bond purchases if its forecast comes true is unequivocal proof that markets are irrational.
The Federal Reserve’s statement that it “currently anticipates that it would be appropriate to moderate the monthly pace of purchases [of bonds] later this year” depends on a very big if. The if is the correctness of the Fed’s forecast of moderate economic growth and employment gains.
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Tuesday, June 25, 2013
S&P Stock Index Trying To Hold On To 1576..... / Stock-Markets / Stock Markets 2013
We closed at 1573, thus, that really is a hold for now. It doesn't look too promising in terms of holding too much longer but the bulls did fight back some today from the breakdown. The S&P 500 fell hard and lost 1576 with force but again, did manage to come back late and hold for the most part. The reason we most likely held wasn't anything bullish in nature. The reality is it was most likely caused by oversold short-term charts on the S&P 500. Dow and Nasdaq. In addition, some leading stocks, which have been crushed recently, hit 30 RSI on their daily charts and that hasn't happened in a very long time. This brought in some bottom fishers expecting a bounce off of oversold not seen in some time.
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Monday, June 24, 2013
S&P 500 P/E Ratio versus 10-Yr Treasury Interest Rates From 1957 / Stock-Markets / Stock Market Valuations
In our recent post, we used historical mean reversion to estimate the Fed’s target rate for 10-year Treasuries, 30-year mortgages, and Baa corporate bonds, based on the Fed’s 2% inflation target. One commenter wrote to us and asked what that implied for the S&P 500 P/E ratios.
We looked at the monthly history of trailing P/E ratios for the S&P 500 since its inception in March 1957, and conclude that there is no useful rule of thumb about P/E ratios and interest rates in the interest rate range from 4% to 6%. At much higher interest rates, P/E’s do become depressed; which relates the to business stifling aspects of very high rates. However, the 4% to 6% range, which is what we may face in next year or two, has not historically been a problem.
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Monday, June 24, 2013
China Stock Market Crashes, SPX Gaps Down / Stock-Markets / Stock Markets 2013
The 10-year treasury yield… Is headed for the moon... in yield terms that is. Because if Bernanke's hope was that the handoff from buyers to sellers would be a smooth one, he may want to conference in Kuroda and get some advice on what happens when the bond market is halted limit down.Good thing Bernanke is not a real hedge fund, or else the $35 billion intraday P&L crash (so far), and $250 billion in the past two months, may raise a few eyebrows.
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Monday, June 24, 2013
BIS Bank Forecasts More Of The Same / Stock-Markets / Banksters
BORROWED MONEY AND LOST TIME
The strange story of the BIS – whose forerunner founded in 1930 was the lynchpin bank of the Third Reich – is well known and heavily documented. Introducing its 83rd annual report for 2013, the Bank for International Settlements strikes a supposedly pragmatic we-can-fix-it tone. Its Overview under the title 'Making the most of borrowed time' says: “Originally forged to describe central banks’ actions to prevent financial collapse, Whatever It Takes has become a rallying cry for them to continue their extraordinary policies”.
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Monday, June 24, 2013
China Stock Market Falls Hard: What's Going On? / Stock-Markets / Stock Markets 2013
Chinese stocks have plunged considerably to lead Asian equities lower with concerns that Beijing may be reluctant or perhaps politically unable to ease a liquidity crunch in the Shanghai interbank money markets, slamming banks particularly hard. The Shanghai Composite suffered its worst one-day percentage loss in nearly four years, plunging 5.3% -- its first close below the psychologically-important 2,000-point level since December last year. The performance is its worst since a 6.7% drop in August 2009 during the global financial crisis. The Shenzhen Composite Index also dived 6.1%. In parallel, Japan and Korea have also fallen more than a percent and now Europe and America are turning negative yet again.
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Monday, June 24, 2013
How to Play the New Normal: Spiking Stock Market Volatility / Stock-Markets / Stock Markets 2013
Shah Gilani writes: Strap on your seat belts...and get ready for a ride...a very bumpy ride.
After having assumed US equities would keep chugging higher with little deviation from "up," things are starting to look a bit different.
Have you been watching Japan? It's a cautionary tale that is about to play out in the US, and globally.
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Monday, June 24, 2013
Stock Market Correction Reaches Temporary Support Level / Stock-Markets / Stock Markets 2013
SPX: Very Long-term trend - The very-long-term cycles are in their down phases, and if they make their lows when expected (after this bull market is over), there will be another steep decline into late 2014. However, the severe correction of 2007-2009 may have curtailed the full downward pressure potential of the 40-yr and 120-yr cycles.
Intermediate trend - SPX continues to progress according to its structure. An intermediate reversal is on the way.
Analysis of the short-term trend is done on a daily basis with the help of hourly charts. It is an important adjunct to the analysis of daily and weekly charts which discusses the course of longer market trends.
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