Stocks soar despite anemic GDP

As the first quarter ends Friday we see that while sentiment has exploded, economic growth is muted. On Thursday the feds released the third revision (not the final revision since it will be changed again and again) of GDP for the final quarter of 2016 and the year. The latest revision of Q4 showed growth […]

Wall St. banks $1 trillion market cap feast on backs of college students

Since the Great Recession of 2008-09 the total amount of consumer borrowing overall has dropped 1%, according to figures from the New York Federal Reserve Bank. Mortgages and home equity lines of credit, the two debt instruments that allowed Americans to use their homes as an ATM after the Internet bubble popped in 2000, have […]

Going hiking with Yellen can be dangerous

To no surprise to anyone on the Street, Janet Yellen raised rates Wednesday by 0.25% to a range between 0.75% to 1.0%. I will not address the two or perhaps three more rate hikes for this year that Yellen spoke of since we do not deal with fantasies here. I had been writing that while […]

Bitcoin trading with paper tiger; Fed can’t job a rate rise

The Securities and Exchange Commission is scheduled to announce Friday whether the Winklevoss twins can begin marketing their bitcoin ETF. This is a fund much like GLD or SLV, which are paper contracts to buy or sell gold and silver. It’s a vehicle to get into these commodities without buying the physical metal. In bitcoin, […]

Tax cut rallies, may create a sell on the news

The President has equity markets hanging on his every word when it comes to his tax-cut plan. Yesterday, after speaking with the CEOs of all the major US airline carriers, Trump took the opportunity to play up his plan to cut taxes across the board for businesses and personal taxes. Just after the release of […]

The Wall St. bulls are on the run, look out.

Apologies for late post as I have computer problems. Wall Street appears to be flexing its muscle again on the back of Donald Trump’s Presidential inauguration. JPMorgan reported 4th quarter earnings this morning and knocked the cover off the ball. Jamie Dimon’s management team just seems to fire on all cylinders, while Bank Of America […]

It’s early for stocks, bonds and bitcoin

While the US equity market appears to be buoyed by the second day run up in European stocks, I am looking at a big sell off in government bonds. Yields on US treasuries — especially on the long end — are soaring this morning as China overnight attempted to strengthen the yuan by pulling currency […]