January 2012
161 posts
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December 2011
164 posts
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Weekly Bull/Bear Recap: December 26-30, 2011
Bull
+ U.S. manufacturing continues to show signs of steady growth. The economy isn’t headed towards recession. The Chicago ISM reports that its PMI report fell a smidgen, from a 7-month high to 62.5. Order Backlogs are at their strongest level since April and will keep activity elevated in the region. Meanwhile, the Richmond Manufacturing Index indicates stabilization, particularly in...
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The Bonddad Blog: A peek inside ECRI's black box →
Great article here on what may be in the ECRI Leading Index, which the bears point as a warning of oncoming recession. The author also makes a strong bullish case for the economy towards the end of the article.
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China manufacturing cools further, survey shows -... →
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— 2011: A Year in Review — (WSJ)
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Euro Drops to 10-Year Low Against Yen - Bloomberg →
It seems the Euro is on a one-way ticket to depreciation. The ECB’s balance sheet now surpasses the Fed’s in size, @ $3.53 Trillion (with a T).
Unfortunately, there is such little confidence that more liquidity (cause it’s a solvency problem and an imbalance of trade flows, both long-term problems) will do the trick that the Euro just fell to an almost one-year low vs. the...
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Consumer confidence hits 8-month high - Economic... →
Confidence surveys have been mirroring jobs data. The economy continues to improve. Is it the holiday cheer, or are the fundamentals changing?
I believe that eventually a weaker global economy will bite the U.S. economy. The Shanghai Index just hit a 33 month low, while copper, the Ph D in economics, isn’t breaking out along with U.S. indices. In fact, it’s currently down...
Dallas, Richmond Fed manufacturing surveys improve... →
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Weekly Bull/Bear Recap: X-Mas '11 Edition
Bull
++ U.S. data continues to show an economy that’s weathering a turbulent global economy much better than the bears could have ever anticipated:
The Dow Theory has flagged a buy signal. Both the Dow and Trannie indices notch new highs. This price action corroborates underlying U.S. economic strength. The equity bull market is set to continue.
The Conference Board’s Leading...
Leading indicators rise in November - UPI.com →
This indicator is at direct odds with the ECRI leading indicator. Who’s right?
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Israeli domestic debate on war with Iran -... →
Business Asia: The Incredible Falling Yuan -... →
So much for those that predicted that the Yuan would skyrocket against the dollar.
North Korean leader Kim Jong-il dies at 69 -... →
U.S. Senate Passes Payroll Tax Cut Extension -... →
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Weekly Bull/Bear Recap: December 12-16, 2011
Bull
++ The U.S. economy has clearly surprised to the upside. Gloomy analysts have underestimated its strength, even in the face of global economic troubles. These external issues will eventually resolve themselves in benign fashion.
U.S. manufacturing data this week demonstrates continued improvement. Led by New Orders and Expectations, both the Philly Fed and Empire State manufacturing...
Mexico sees G20 IMF funds deal in Q1: official |... →
U.S. Shoppers Foot Bill for Soaring Pay in China -... →
Along with funny money printing, inflation may eventually return with a vengeance as wages between China and the U.S. equalize.
9 REASONS THE U.S. EQUITY MARKET HAS THE GREEN... →
All decent points. The final answer will come from sovereign bond yields. Keep a close eye on how these trade.
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Cashin On The Coordinated Commodity Collapse →
The end is pretty scary. 2031?
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Chinese Spring coming up? | thetrader.se →
My speculation on the possibility of a “Chinese Spring” has been noted by none other than Stratfor. Most investors still expect a soft-landing. The trend of the news is pointing towards a more damning solution.
Italy risks social explosion over austerity: union... →
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European leaders have repeatedly insisted the pact’s substance will not be...
– EU treaty hopes come under strain - FT.com
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Furthermore, the current treaty forbids the ECB from monetizing the debt. Yet, I still read how “printing” is inevitable.
Perhaps it will take care of acute pressures. But...
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If Paul wins Iowa, which is not out of the question, then you’re going to...
– Ron Paul Could Lead From Behind - WSJ.com
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Join forces with OWS. Please.
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Skills gap hobbles US employers - FT.com →
…”He is offering a salary of more than $80,000 with overtime, including health and pension benefits. Yet in spite of extensive advertising, he has had no qualified applicants. He is trying to train some of his unskilled staff but says none has the ability or drive to complete the training.
Mr Greenblatt’s predicament speaks to one of the biggest economic debates about today’s 8.6 per...
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China Lays Out Economic Policy for 2012 - WSJ.com →
This is a secular bullish tidbit. The global restructuring is taking place.
While it will take a period of time, there is a secular transformation taking place, which will yield superb opportunities in the years to come.
In the meantime, strap on your seat beats as it looks to be a wild ride in 2012.
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Dear Nouriel Roubini: The Fundamental Case for... →
It’s certainly a compelling story to say that Gold is headed to the moon as central bankers (planners) continue to print money to their heart’s content and remain irresponsible. The dollar (fiat currencies in general actually) would suffer as a result.
May gold bugs have been caught off-guard due to the Fed’s “responsible,” for once, action of not resorting to...
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The interview gets a little too political, but it’s always a good laugh to see Davidowitz explain the status of the consumer (he spits out some good stats).
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China: One of Our Best Export Customers →
We are at an interesting time in history. I’ve probably come across as an advocate of protectionism if you’ve read my prior posts. I’m actually not. However, engaging in free trade without the parameter of equalized (or semi-equal) wages is detrimental to our development. Our industrial base has been gutted over the years and shipped to lower wage countries.
However,...
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Hard drive shortages hit Intel earnings |... →
Here’s why there is a shortage. This doesn’t lend credence to the “falling demand” story so it doesn’t support the bearish thesis. Then again, earnings are what drive stock (risk) markets.