Don't call it a taper but the Bank of Japan did not buy one share of ETF's in May. Not one of a market that they already own 70% of. Don't worry though because I'm sure they will be back on any sharp decline in stocks. That said, there has been an enormous amount of pressure on them to stop because of the distortive impact of what they are doing in return for little …
[Read more...] about Don’t call it a taper/Truth serum/40 yr high
To further my point from Friday with the late 1990's stock charts of a few names that the movie we are seeing now with some stocks is just a sequel with a slightly different script, here was a front page cover of Forbes back in 1998, h/t SH. The only definition I know of the word 'transitory' is "not permanent." The only question is not what we think that …
[Read more...] about ‘A Bunch of Kids are Tormenting Wall Street!’
Positives 1)ADP said a net 978k private sector jobs were added in May, well more than the estimate of 650k but partly offset by an 88k downward revision to April to 654k. The job distribution by business size was well balanced. ADP said “While goods producers grew at a steady pace, it is service providers that accounted for the lion’s share of the gains, far …
[Read more...] about Succinct Summation of the Week’s Events – 6/4
As we hear rationalizations for the current meme stock craze as this time is different, I want to show some charts of stocks from the late 1990’s for those that weren’t around and as a reminder to those that were watching. Here are the names shown: Iomega, JDS Uniphase, Verisign, Ciena (the most extreme), TimeWarner/AOL, Emulex, Lucent and Nokia. IOMEGA JDS …
[Read more...] about “But life is just a party, and parties weren’t meant to last”
Net payrolls grew in May by 559k, below the estimate of 675k. The private sector contributed 492k of this vs the estimate of 610k. The two prior months were revised up by 27k. The household survey said 444k got employed and when compared with the 53k person drop in the size of the labor force, the unemployment rate fell to 5.8% from 6.1% and the all in U6 rate is now …
I heard someone on tv yesterday argue that the slowdown in money supply growth was a sign that the ‘market’ was basically initiating a taper notwithstanding no such thing from the Fed. I want to point out that there is NO slowdown in the pace of money supply growth when viewed m/o/m this year. The ONLY reason it has slowed y/o/y is because of the very tough comps from …
[Read more...] about Stealth taper going on?/’Quite a ways off’?
As expected, initial jobless claims fell to 385k from 405k last week. It’s the 1st print with a 3 handle since early last year and continues to reflect the slowing pace of firing’s, after all with more than 8mm job openings. The 4 week average fell to 428k from 459k. Those filing PUA declined to just 76k from 94k. The problem though was the jump in continuing …
Rather than have them mature, I'm glad to see the Federal Reserve decide to sell the corporate bonds they own directly and indirectly via etf's that were purchased last March. I don't mean to be a Monday morning quarterback here but I think notwithstanding the clear stress everywhere last year, there was not going to be a problem finding buyers for risk free US …
With it well known the broad supply challenges many businesses are facing at the same time procuring labor has become a big issue, let’s look at the quotes from the Fed’s Beige Book as to the extent companies are passing along their higher costs to the rest of us and what they have to pay to get more workers. Many companies had success raising prices, a few were more …
[Read more...] about What can be passed on, what needs to be paid?
More evidence that inflationary pressure particularly on the goods side is a global phenomenon, the Eurozone said its producer price index rose 1% m/o/m in April after a 1.1% increase in March, a .5% rise in February, a 1.7% spike in January after a .9% jump in December. Annualize those m/o/m increases, and you have PPI running at 12%. Goosed by easy comps, the y/o/y …
[Read more...] about EZ PPI/Yuan/Turkish mess, gold, bitcoin/MBA
Peter is the Chief Investment Officer at Bleakley Advisory Group and is a CNBC contributor.
