Anemic growth shackles Fed

The US Q3 GDP came out at 1.5% yesterday, inline with what I predicted here. And that was the only good thing about it. Q2 GDP was 3.9%, which was an outlier for the last 7 years of sub 3% growth, and was based on huge inventory build. That growth appears to be not sustainable […]

The Fed’s Decemberist revolution

You have to wonder about Janet Yellen and the Federal Reserve governors. They voted 9-1 to hold rates at zero, but suggested December is on the table for a rate rise. I’ll have what they’re having. Let’s ticked off what’s wrong with their thought: China just cut interest rates to combat slowing growth as it […]

Tide is going out for firms

As liquidity recedes like the tide — with the Dow and S&P 500 remain flat for the year — we are beginning to see who is wearing a bathing suit. Many firms use special vehicles or side deals to manage revenue and earnings. While markets rise and pricing power exists, this practice can work and […]

Corporate welfare program: More easing ahead

On Saturday I wrote how the global equity markets soared on the news of central bank moves or promises of moves to pumped more cash into a slowing economy. All these moves do not foretell a growing world economy. If fact it’s the complete opposite as predicted by the move announced Monday that America’s biggest […]

Special Saturday post

I’m not a portfolio adviser, but I think there needs to be some perspective offered on what stocks and bonds did at the end of this week. The Dow Jones index rose 2.8% or 480 points on Thursday and Friday. The S&P 500 index gained 2.2% or 44 points over those two days. The Nasdaq […]

Welcome to Wonderland

So Mario Draghi — formerly of Goldman Sachs — and the European Central Bank Thursday told the markets that further heroin in the form of EQE (European Quantitative Easing) could be delivered in December. And just this morning China cut its lending rate by 0.25% on slower growth. These two events sent global stock indices […]