Monthly Archives: July 2017

This Rhyme Is Different: Base Money > M1

“History doesn’t repeat itself but it often rhymes.” –  Mark Twain (maybe) We have been speaking a lot about how the liquidity in the market today is different than in the past.   The chart below reflects this better than … Continue reading

Posted in Economics | Tagged , , , | 23 Comments

Caterpillar Beats For All The Right Reasons

Caterpillar, a bellwether for the global economy,   beat on both the top and bottom line for all the right reasons (increase in sales and revenues) with their earnings release this morning.  The stock is up over 5 percent at … Continue reading

Posted in Earnings, Uncategorized | Tagged , , | 3 Comments

No Worries In The South Korean Markets

We have been writing a lot these days about how crude oil is not pricing any geopolitical risk of a very messy Middle East.  See here and here. That’s nothing, however,  compared to the performance of the South Korean stock … Continue reading

Posted in Geopolitical, Uncategorized | Tagged , , , | 5 Comments

Dollar Index & Mexican Peso Dancing To The Same Tune

What tune is that?   The Trump slump. Even though the Euro makes up almost 58 percent of the dollar index,  the dollar is going down  for the very same reasons the Mexican peso is going up.   The poor start … Continue reading

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COTD: Guess Who Is Growing And Who Is Not?

We will give you a hint: …credit is the mother’s milk of growth; without credit the economy cannot flourish. And credit cannot flow freely without a well-functioning financial system. – Mark Zandi But as Japan and the others illustrate, there’s … Continue reading

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US Sector ETF Performance – July 21

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Global Risk Monitor – July 21

Click on table to enlarge and for better resolution

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COTD: Amazon Eating Retail

(COTD = Chart of the Day) It’s important to note that Amazon still only boasts a 5 percent share of total retail sales, excluding food, across the country, according to data from the U.S. Census Bureau, Sanderson said. – CNBC … Continue reading

Posted in Economics, Equity, Uncategorized | Tagged , , | 3 Comments

Did Janet Yellen Hear Us?

In our piece, Reflexivity And Why The Fed Must Sell The Long End, posted on June 13th,  we warned of the dangers of a flattening yield curve based on distorted interest rates due to QE. ..some still look to the badly distorted bond … Continue reading

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Private Equity Coming To A Neighborhood Near You

Interesting piece in Wall Street Journal, which corroborates our last post,  The New “Supply-Side Economics” Fueling Asset Bubbles.   We argued institutional investors have been on a buying spree of residential housing for rental properties taking a massive amount of supply off … Continue reading

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