Archive - Aug 2014 - Blog entry

Forget about "Who's"...

Martin Feldstein, Harvard University professor alludes to what many in the financial community recognize that risk-taking is out of control.

CME halted trading on its electronic platform and said it was due to "planned software reconfigurations." CME, which owns the Chicago Board of Trade, New York Mercantile Exchange and other markets, made the reconfigurations over the weekend as part of ongoing upgrades to technology, a spokeswoman said in a statement. Market participants were left scratching their heads as to why the "planned software reconfigurations" did not take place prior to the commencement of trading.

Muhammad  – the Founder of Islam – Specifically CONDEMNED AS SINNERS Anyone Who Failed to  Protect Christians or Interfered with Christians’ Ability to Practice their Own Faith

The advent of computer generated trading algorithms heralded a quantum leap forward in the quest for 24/7 control of markets. No longer were humans beings required to do such unseemly things as man trading desks or worry a whit if free markets were, if even infrequently, attempting to function. Algo precision has made even the blackest of black swan events seem to turn lily white in their utter non-eventfulness. No more significant Dow or bond crashes, and best of all, no gold rallies exceeding (exactly) 1.00%, or the occasional 2.00%.

Rising rates would hurt bonds and equities but would support gold. This was clearly seen in the 1970s when rising interest rates corresponded with rising gold prices. Gold becomes vulnerable towards the end of an interest rate tightening cycle when there are positive real interest rates and savers earn something on their deposits.

The future fund flows out of the bond market over the next four months as the economic data comes in hotter each month s going to be staggering to watch as the realization that the Fed has to move on rates by March, and not June of 2015.

Dispassionate overview of the week ahead, with thoughts about September.

Welome to the the new and improved Age of Terror...

The econ data this week signal the US Economy is in a bull market (not the same as the Fed -roided stock and commodity markets), now let`s hope we can keep inflation from spoiling the party! 

And Should We Just Kill Them All - as an American News Commentator Suggests - and Let God Sort 'Em Out?

The first half of the year has been relatively quiet for the markets, but the coming months might bring more turbulence...

Under the imposition of StealthFlation, the Velocity of Money lies dormant while increasing Inflationary risks build below the surface.

Overview of the technical outlook for the major currencies, bonds, Treasuries, stocks, CRB and oil.

Nyuk, nyuk, nyuk...