July 28th, 2014
The attached Barron’s article appeared in December 2007 as an outlook for the year ahead, and Wall Street strategists were waxing bullish. Notwithstanding the advanced state of disarray in the housing and mortgage markets, soaring global oil prices and a domestic economic expansion cycle that was faltering and getting long in the tooth, Wall Street strategists were still hitting the “buy” key. In fact, the Great Recession had already started but they didn’t have a clue: "Against this troubling backdrop, it’s no wonder investors are worried that the bull market might end in 2008. But Wall Street’s top equity strategists are quick to dismiss such fears."
Clear examples of how the wrong regulation HURTS the US consumer, and how to do something about it.
The Fed wants asset bubbles because they hide the rot within the US economy. If the Fed didn’t raise stock or housing prices, people might actually start to wonder… “hey, why is my life getting more and more difficult despite the fact that I’m working all the time?”
As multiple entities of one of Europe's largest banking dynasties rapidly crumble into bankruptcy, there are bound to be ramifications. With even the Portuguese President fearing Espirito Santo's systemic impact, we thought the following chart from Thomson Reuters would highlight the fact that is far more than just a Portugal thing... it has notable consequences for large businesses from Brazil to Mozambique.
Is there anyone in the world who is not mocking John Kerry? As AP reports, Obama administration officials were fuming Monday over a torrent of Israeli criticism of Secretary of State John Kerry's latest bid to secure a cease-fire between Israel and Hamas. Israeli media commentators have leveled almost nonstop criticism at Kerry in recent days over his attempts to bring Qatar and Turkey — two countries viewed by Israel as strong Hamas supporters — into the cease-fire negotiations - "U.S. Secretary of State of State John Kerry ruined everything." The White House is not happy - in unusually harsh language, officials said the criticism of Kerry could put the relationship between the U.S. and Israel in jeopardy. They also said the personal attacks on Kerry crossed a line. Another red line crossed?
SSDD: Big dump at the open, then the usual low volume levitation higher as the BTFD algos engage. But why? While the economic news today was bad it wasn't so horrible to merit a new all time high in the "market", while geopolitical developments continue to deteriorate, however at the usual "better than expected" pace. So what might have been the reason for today's latest surge higher which just brought the "market" back into the green? This note from Dennis Gartman may well have been the catalyst.
The most notable fact about today's $29 billion auction of 2 Year Notes was that the final yield of 0.544%, which stopped through the 0.546% When Issued, is that this was the highest auction yield since May of 2011 when the paper, since matured, priced at 0.56%. Considering some at the Fed anticipate the Fed Funds rate hitting over 4% by the time this bond is supposed to mature, either the Fed hawks or the market is wrong.
As the following just released chart from Goldman shows that while non-GAAP EPS in the US have stabilized (and Japan is clearly the upside suprise even as its economy is once again teetering on the edge of recession), and Asia ex Japan is slowly rolling over once more, it is Europe that is the big shocker: as of July, European 2014 EPS forecasts are now the lowest they have been for the entire year, and are down 8% from where they were at the beginning of the year!
Which appears more likely - a straight-line extension of the past two years' rise in stocks, or another "impossible" decline to complete the megaphone pattern?
Manipulation of the silver market was covered in a just released ‘Get REAL’ Special on Silver. Key topics discussed in the interview include * The fix is in: Old boys, pints of beer, big cigars and top hats, * the risk of manipulation through HFT, computer trading and ‘dark pools,' * “Meet the new boss; same as the old boss,' * The importance of owning allocated and especially segregated silver
Russia Slams "Puzzling And Unprecedented" $50 Billion Yukos Award, Challenges "One-Sided" Court RulingSubmitted by Tyler Durden on 07/28/2014 11:48 -0400
The Hague is not Vladimir Putin's favorite place today. Following the "war crime" comments earlier, the arbitration court's decision to rule in favor of Yukos shareholders (and thuis against the allegedly "politically motivated" confiscation of the firm's assets by the Russian government) with a $50 billion settlement (half what was sought) has prompted a quick and angry response from the Russian government. Blasting the "one-sided use of evidence," and re-iterating the massive tax evasion that the leadership were involved in, Russia slams "the puzzling unprecedented amount of damages" awarded, claiming the process is "becoming increasingly politicized."
• Use of the elevator is restricted to only 4 persons per trip
• Absolutely, no clustering on the stairways
• No gathering of more than five persons except for meetings in conference spaces or spatial environment
• Absolutely no handshakes, hugging of other physical bodily contact
• Please report any suspicious illness or strange conditions amongst employees
• Only persons with genuine business dealings and transactions would be permitted on the premises
• All employees are further encouraged to wear long sleeve clothing to minimize any possible risk of exposure
The "fear of missing out" (on the next Chipotle) is strong with this one as El Pollo Loco (LOCO) IPO'd at $15 on Friday, opened at $19 and today explodes to almost $33 at a mind-numbing ~20x EBITDA (market cap over $1.2 billion on a $53 million EBITDA)... crazy chicken indeed...