ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Former Fed chief Greenspan: 'I was wrong 30% of the time' – ABC News From the councils of government to the paneled boardrooms of Wall Street, the idea of Alan Greenspan erring once would have seemed rank heresy. Those days, however, are long gone. Pressed Wednesday to defend his stewardship of the U.S. economy in … Read more
Home Depot Is Adding Jobs for First Time in 4 Years (Update1) – Bloomberg.com Home Depot Inc., the largest U.S. home-improvement retailer, is adding store jobs for the first time in four years in anticipation of a rebound in sales. (tags: HomeDepot economy jobs)
For most of this year, I have interpreted the Federal Reserve’s policy to maintain “exceptionally low levels of the federal funds rate for an extended period” as the equivalent of low rates for at least the next six months from each new confirmation. This interpretation came from a January interview with New York Federal Reserve … Read more
Is the Stock Market Cheap? …every time the P/E10 has fallen from the first to the fourth quintile, it has ultimately declined to the fifth quintile and bottomed in single digits. Based on the latest 10-year earnings average, to reach a P/E10 in the high single digits would require an S&P 500 price decline below … Read more
Over the past several quarters I have looked to Acuity Brands (AYI) as a potential signal of the earnings season to come, especially when it comes to commercial real estate. For several quarters, AYI has reported dour news about its industry and the economy. Sometimes traders and investors sold the news, sometimes they bought it. … Read more