Markets snapped two days of losses and ended higher on Friday boosted by encouraging consumer spending data. However, benchmarks lost some of their initial gains as the bio-tech stocks adversely impacted markets in late afternoon. Microsoft’s strong gains following its announcement of launching Microsoft Office on iPads propelled the Dow to end in the green.For a look at the issues […]
Drivers of Consumer Demand
Are we headed for another 2000 or 2007 type correction? While we do not expect a selloff of that magnitude, we are concerned that the stock market has gotten ahead of the economic fundamentals. Last year, S&P 500 went up by over 30%, while the U.S. GDP only grew by 1.9% in real terms. We expect the […]
SummaryThe Fed’s forecast for economic activity has dropped.
Slow economic growth will mean slower increases in corporate profits.
The level of stock prices will depend upon how long the Fed’s credit inflation can support new or existing levels.
Yes, the Open Market Committee […]
Fears of Russia’s possible economic isolation amid the political crisis in Ukraine have been causing investors to pull out their funds from the domestic stock exchange market, while international markets have been shaky as well.By midday on Friday the ruble-denominated MICEX fell 5 percent and the dollar-denominated RTS was down 5.5 percent, a low since August 2009. Both, however, later […]
India’s stock market has hit record highs on consecutive days over the past few weeks, largely due to an outpouring of optimism that Narendra Modi, a pro-business and no-nonsense candidate for Prime Minister, will win the upcoming election.James Crabtree reports for the FT:The benchmark Sensex index retreated slightly on Tuesday, but the day before it nosed above 22,000 for the […]
After posting another new high last week, stocks were taking a breather during Monday’s session. The primary catalyst came out of China. From Reuters:China’s exports unexpectedly tumbled in February, falling 18.1 percent from a year earlier and swinging the trade balance into deficit. The data underscored recent concerns about the outlook for China’s economy, even though the Lunar New Year […]
Ukraine Fears EaseMonday and Tuesday have been about the conflict in Ukraine. Monday’s news was fear related; Tuesday’s news was better. From Bloomberg:U.S. stocks rose, with the Standard & Poor’s 500 Index rebounding to a record from its biggest loss in a month, as comments from Russian President Vladimir Putin signaled the Ukraine crisis won’t immediately escalate. […]
Escalating political tension between Ukraine and Russia over the Crimean region dragged the benchmarks down to their worst selloffs in about a month. Concerns that the movement of Russian troops in the Crimean region of Ukraine may lead to larger conflict saw investors moving to the safe havens. Encouraging reports on ISM Manufacturing Index, construction spending and personal income failed […]
Benchmarks finished mostly higher on Friday following some encouraging economic numbers. While a better-than-expected consumer sentiment report and Chicago PMI reading boosted investor confidence, less-than-anticipated growth in US economy and pending home sales were overlooked as an outcome of the severe winter season. The indices not only notched weekly gains, but they also registered strong February gains.For a look at […]
Submitted by Chris Martenson of PeakProsperity.comThe Stock Market’s Shaky FoundationAccording to the stock markets in the US and in Europe, the world’s economy is not just in good shape, but is in the best shape it’s ever been. The S&P 500 hit an intraday new record high of 1,858.71 on Feb 24, 2014, and is now 18.6% above the peak […]
