From Art Cashin of UBS We’ve noted over the last two weeks that the Dow Industrials have been diverging from most other indices and particularly the Dow Transports. An important part of the divergence has been the relative narrowness of the rally in the Dow. In today’s WSJ, Justin Lahart took note of the narrowness: Americans cheering the U.S. stock …
One Man’s Opinion: The Death Cross Of Central Bank Credibility
By ZeroHedge With no expectations of a rate-hike last week, and traders rapidly giving up on The Fed’s dream of a steadily higher rate trajectory, a funny thing happened in the markets… In the eyes of The Fed, their monetary policy has not been this ‘tight’ since October 2008. However, in the eyes of the market, financial conditions just hit …
One Man’s Opinion: And The Best Performing Stock Market In The World Is. . .
By Simon Black Pop quiz: What country has the world’s best performing stock market? It’s not the United States. Or Canada. Or China. The answer is Venezuela, whose primary stock market index over the last year is up nearly SEVEN FOLD, from 11,700 last summer to a record 72,700 today. It’s amazing that a country where people are literally starving …
One Man’s Opinion: Stockman Warns Of The Imperial City’s Fiscal Waterloo
By David Stockman It’s all over now except the shouting about Obamacare repeal and replace, but that’s not the half of it. The stand by Senators Lee and Moran was much bigger than putting the latest iteration of McConnell-Care out of its misery. The move rang the bell loud and clear that the Imperial City has become fiscally ungovernable. That …
One Man’s Opinion: Ron Paul: “I Would Not Be Shocked” If Stocks Crash 25% In 3 Months
By ZeroHedge Precariously overstretched equity valuations and the purportedly “data dependent” Federal Reserve’s insistence on raising interest rates could bring about the next market correction as soon as October, former Congressman Ron Paul said during a recent appearance on CNBC’s “Futures Now.” The stock market’s fragility – exposed by a series of volatility events in recent months – suggests that …
One Man’s Opinion: Get Ready For “QT1”: A First Look At The Fed’s Hidden Policy
By James Rickards The Federal Reserve is now setting out on a new path for quantitative tightening (QT) after nine years of unconventional quantitative (QE) easing policy. It is the evil twin of QE which was used to ease monetary conditions when interest rates were already zero. First, it is important to examine QE and QT in a broader context …