Market Conditions

Beige Book Signals Inflation & Healthcare Concerns Amid Modest Growth

Despite major disruptions from Hurricanes Harvey and Irma, all 12 Federal Reserve Districts indicated that economic activity increased in September through early October. Several Districts noted increased manufacturing input costs, citing storm impacts (with 58 mentions of the word Hurricane) and labor constraints (employers were having difficulty finding qualified workers), but The Fed notes healthcare service prodviders were less upbeat.

"When", Not "If"

“It is a bad sign for the market when all the bears give up. If no-one is left to be converted, it usually means no-one is left to buy.

Buffett's Wrong - Why Market Valuations Are Not Justified By Low Interest Rates

"It's such a comforting, even satisfying assumption; the idea that 'lower interest rates justify higher valuations'...   Unfortunately, the convenience of investing-by-slogan is currently leading investors into what is likely to be one of the worst disasters in the history of the U.S. stock market..."

The Key Things To Look For In Today's FOMC Minutes

While inflation will likely be a heavily debated topic, given recent Fedspeak it appears that most voting members are looking through some of the recent weakness and prefer to continue the "gradual" removal of monetary accommodation, in line with speculation that the Fed is no longer data dependent and may have lowered its inflation target outright.

EPA To Repeal Obama-Era "Clean Power Plan"

In another policy move that is sure to 'trigger' liberals and climate-change advocates, EPA Chief Scott Pruitt is set to announce that the agency is taking formal steps to repeal an Obama-era policy meant to curb greenhouse gas emissions from power plants...

Silicon Valley Snake Oil: It's Passed Its 'Sell By Date'

“It’s different this time!” One of the greatest examples of Silicon Valley “snake oil” ever devised, embraced, and consumed en masse...The problem with “snake oil?” It’s never different. And today’s newest and improved version has passed its expiration date – and is beginning to turn rancid."

Existing Home Sales Slump To 1-Year Lows, NAR Says "There's Simply Not Enough Homes For Sale"

After July's housing sales data horrors, yesterday's permits rebound prompted some hope (despite last week's 9.7% collapse in mortgage applications) but August's existing home sales just crushed that dream, dropping to one-year lows. Following a 1.3% MoM decline in July, August saw existing home sales tumble 1.7% MoM (against expectations of a 0.2% rebound) and up just 0.2% YoY.