Widespread Signs of Credit Market Froth
I’m getting a bad case of déjà vu from reading the Financial Times over the last week.
Read more...Category Archives: Investment outlook
Current Problems Associated with the End of the Third Industrial Revolution
The third industrial revolution is long in tooth. What does that portend for investments and the economy?
Read more...Wolf Richter: Like So 2000 – Wall Street Pumps Crashed Internet Stocks
Internet stocks are down since March, so they must be a buy….right?
Read more...Wolf Richter: Hidden Leverage Threatens To Blow Up the Markets
Leverage-on-leverage vehicles were the big driver of the global financial crisis. Some investors are going back to their overly-risky ways.
Read more...Is Smart Money Buying or Selling Stocks?
By David Llewellyn-Smith, founding publisher and former editor-in-chief of The Diplomat magazine, now the Asia Pacific’s leading geo-politics website. Originally posted at MacroBusiness From BofAML: Citi is in no doubt that retail has it right: • The DJIA posted a bullish outside month in April. This is only the 3rd time that has happened since […]
Read more...Wolf Richter: Implosion of Housing Bubble 2 Hits Six Cities in the West
Last time, all that craziness was called a “housing bubble” with hindsight. This time, it’s called a “housing recovery.”
Read more...McKinsey Gives “Dare to Be Great” Speech to Private Equity Investors as Returns Fall
McKinsey has issued a new report on the private equity industry that ought to give any investor cause for pause.
Read more...Philip Pilkington: The Yield Curve and Recessions – Against US-Centricism
One of the nicest stylised facts in applied economics is that if the Fed inverts the yield curve it will cause a recession. But how applicable is it?
Read more...Wolf Richter: “It’s Not a Bubble,” Retail Investors Are Told As The Smart Money Bails Out
Even as insiders bail, brokers assure retail investors there’s nothing to worry about.
Read more...Chinese Bond Default Rattles Markets; Harbinger of More Credit Woes?
A corporate bond default should hardly be a headline dominating-event unless the default in question is of a particularly large concern, or is tightly coupled (as in could, Lehman-style, trigger more distress) or is a precursor of things to come.
Read more...Wolf Richter: The Smart Money Quietly Abandons The Housing Market
Some savvy investors were warning the single family home rental market was overheated nearly a year ago. Now it looks like more and more are realizing that party is over.
Read more...Philip Pilkington: Keynes’ Liquidity Preference Trumps Debt Deflation in 1931 and 2008
Why defining “liquidity trap” precisely matters in understanding crisis dynamics, and Keynes, and not Krugman, got it right.
Read more...Wolf Richter: Stinking Corporate Revenues, Desperately Doctored Earnings-Per-Share
Yves here. Wolf is flagging the end-game in the efforts to present US corporate earnings as being on a decent upward trajectory. The fact that Apple disclosed last week that it spent $14 billion in a two-week period buying back stock should be seen as a massive sell signal. As one of my stock jockey buddies remarked, “If the company won’t invest in its business, why should I?”
Read more...Wolf Richter: Cracks In The Tech Bubble (That Doesn’t Exist)
After having denied feverishly that any kind of bubble exists, people watch incredulously as the hot air hisses out of the very bubble whose existence they’re still denying. And afterwards, everyone had seen it coming. Because cracks had been visible for a long time.
One of the cracks is Twitter.
Read more...Market Rout Continues, Proving Abject Failure of Fed’s Forecasts and Policies (Updated)
In case you missed it, it’s ugly out there. US markets swooned as an unexpectedly weak manufacturing report, the ISM, was so bad it couldn’t be attributed solely to bad weather and deepened investor funk.
Read more...