The market hangs in a virtual stasis. Over the past couple of months, we have continued to drift from one economic report, or Central Bank meeting, to the next. The bulls and the bears have met at the crossroad.
July was a bumper month for US consumer "charging it", with both credit card experiencing its second biggest monthly increase since the crisis, and with auto and student loans hitting new all time highs.
Brexit is just a symptom of the disease eating away at the fabric of our global economy. Lehman’s collapse was not the cause of the 2008 worldwide financial crisis. It was just the excuse for something that was going to happen no matter what. Bad debt, bad bankers, bad regulators, bad politicians, media cheer leading, and a willfully ignorant populace were a toxic combination – and it’s worse today.
Apple has been told by Beijing's intellectual property regulator to stop sales of the iPhone 6 and iPhone 6 Plus in the city. The two iPhone models infringe on a Chinese patent for exterior design held by Shenzhen Baili for its 100C smartphone, the Beijing Intellectual Property Bureau wrote in a statement on its website
After a brief haitus from the ongoing currency wars, China fired another salvo at The Fed tonight by devaluing the Yuan fix to 6.5693 - its weakest against the USD since March 2011. After eight days higher in a row for The USD Index, it seems PBOC has turned its currency liberalization plan off, stabilizing the broad Renminbi basket (which has been steadly devalued) and turning its attention to devaluing against the USD. Having unleashed turmoil in August (pre-Sept FOMC) and January (post Dec rate-hike), it appears the rising rate-hike probabilities jawboned by The Fed are decidedly disagreeable to "authoritative persons" in China.
Since the beginning of the year, the greenback has shown it's not almighty after all; and gold - the barbarous relic as some have called it - may be en vogue again? Where are we going from here and what are the implications for investors?
Sometimes it’s nice to get a sanity check and hear other investors and market professionals views on how the stock market has changed over the past few years. We hear more and more from various market participants that the market seems to be one big correlated beast that doesn’t trade on supply and demand anymore...
Shortly after the close today, Apple will report its much watched earnings which will be closely watched for several reasons. The biggest one is that since Q1 2014 AAPL has contributed 25% of the S&P’s 4.2% growth rate (excluding the EPS benefit of the company's massive buyback program). Furthermore, roughly 40% of the nearly 9% jump in Tech margins since 2009 is attributable to Apple alone. However, that was all in the past: this quarter Apple is actually forecast to subtract 0.7% from the S&P's bottom line.