The Disconnect

20150227_WTFF_1_0

No commentary needed.  Hat tip: Zerohedge.com

Bonds Versus Stocks As A Good Economic Indicator

From Dr. Lacy H. Hunt:

“As treasury investors we can’t afford to listen to the Fed. As a matter of fact we positioned ourselves at the long end of the curve, and have been there for a long time, and during this whole time period they were talking very optimistically about the economy, inflation and so forth, and none of those materialized.

I’m only going to defend what is going on in the bond market and the bond market is a very good economic indicator. When bond yields are very low and declining it’s an indication that the same is happening to inflation and that economic activity is weak. The bond yields are not here for any fluke of reason. They are here because business conditions in the US and abroad are quite poor.”

Read the entire interview here, excellent stuff:   http://www.zerohedge.com/news/2015-02-27/monetary-policy-bankrupt-dr-lacy-hunt-warns-bonds-not-stocks-are-good-economic-indic

Chicago Nears Fiscal Free Fall

“Chicago drew closer to a fiscal free fall on Friday with a rating downgrade from Moody’s Investors Service that could trigger the immediate termination of four interest-rate swap agreements, costing the city about $58 million and raising the prospect of more broken swaps contracts.”

Eventually you run out of others peoples money.

http://finance.yahoo.com/news/exclusive-chicago-rating-downgrade-could-end-swaps-deals-174532024–finance.html

Where Did Americans Spend Their “Gas Savings”?

On health care.   “According to the first estimate of Q4 GDP data, the American consumer spent a whopping $20.4 billion in nominal dollars on healthcare, which also resulted in the biggest consumption contribution to GDP in years.”

“Today, following the first revision of consumer spending, we learn that in the fourth quarter Americans spent even more on healthcare, pushing the total up by $1 billion more, to a whopping $21.4 Bn, or 18% of all spending on goods and services in Q4.”

persona spending Q4 revised_0

Hat tip: Zerohedge.com

The Great Disconnect

20150226_gdp1_020150226_gdp2_0

       Global GDP growth expectations have reached a record low.  The MSCI World Stock Index is sitting at fresh all time highs.  The great disconnect between the economy and stocks continues.

Hat Tip:  Zerohedge.com

Initial Jobless Claims Surge Most Since 2013

20150226_claimks_0

From Zerohedge.com:   After last week’s holiday-shortened exuberance over initial jobless claims, this week’s slam back to reality is quite a shock to the “everything is awesome” crowd. Initial jobless claims jumped 31,000 to 313,000 – the biggest percentage rise since December 2013. Continuing claims dropped modestly but remain up around 3.5% over the last quarter – near the worst since 2009.

Visualizing Who Controls The World’s Silver Supply?

http://www.zerohedge.com/news/2015-02-25/visualizing-who-controls-worlds-silver-supply

Opinion: Stock-market crash of 2016: The countdown begins (MarketWatch)

http://www.marketwatch.com/story/stock-market-crash-of-2016-the-countdown-begins-2015-02-25?dist=tcountdown

Screen Shot 2015-02-25 at 9.52.53 PM

While Median Household Income Languishes, Six Figure Autos Fly Off The Shelves

-1x-1

From Bloomberg:  Thanks to a bullish economy and a burgeoning crop of multi-millionaires all over the world, the handful of carmakers catering to the very richest have finally started to figure out that they have been drastically underestimating demand for six- and seven-figure vehicles. That realization has fueled a new generation of interesting machines whose eye-popping price tags have widened the ultra-premium market. At the moment, unlike in decades past, the fastest-selling products in the auto business are also the ones that cost the most.  In the past five years, global registrations of the seven largest ultra-premium car brands–a group that also includes Aston Martin and Lamborghini–have surged by 154 percent, far outpacing the 36 percent gain in overall car sales worldwide. Much of the growth has come from Maserati and Porsche, two companies that sell many of their vehicles for less than $100,000. Even excluding those brands, however, the swanky car segment has swelled by 62 percent since 2009.

Read the whole thing:  http://www.bloomberg.com/news/articles/2015-02-25/hyper-luxury-cars-are-now-selling-faster-than-normal-ones

Protected: Trade Alert

This content is password protected. To view it please enter your password below:

Return top

About Us

Welcome fellow traders and investors,

As Money Managers and Traders, the mission of our Blog and Radio Show is to go on record and further educate our readers and listeners in technical analysis and proper money management across all asset classes.

Our methods are not the traditional advice you hear repeated and repackaged over and over again, but that’s exactly the point and the reason why we know how to advance and prosper in every kind of market.

To Your Success,

Doug & Gary