ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Graphs depicting economic data can convey different meaning to different people. For example, several models exist to explain economic growth and the variables important for forecasting economic performance. My most recent experience with this dynamic occurred after reading John Maudlin’s latest treatise on the deflationary threat facing the global economy (free subscription required). I remain … Read more
Day-to-day, Mr. Market’s mood seems to swing dramatically up and down with little consistent rhyme or reason. The neat rationalizations of the bulls one day give way to the equally neat rationalizations of the bears the next day. For example, the market is very undervalued because of record low Treasury bill rates, highly stimulative monetary … Read more
As fears mount that the United States is dipping into a double-dip recession and headed down the road of deflationary Japan, Federal Reserve Ben Bernanke tip-toed, tap-danced, and downright side-stepped these landmines during his testimony to the Senate today. The market still did not like what it heard, sold off nearly the instant the Semiannual … Read more
I have often wondered whether Germany’s initial reticence to help the Eurozone solve its debt problems was “engineered”, in part, to devalue the euro from its suffocating highs in 2009. We will likely never know for sure, but the euro’s remarkable slide in 2010 has apparently generated impressive economic results, especially in Germany. There is … Read more
I am always intrigued by the words of optimism and the steadfast bullish arguments in the midst of market sell-offs. I am not talking about technical assessments calling for a short-term bounce. I am talking about the “everything is just fine” variety. Monday’s Nightly Business Report provided a picture-perfect example of such talk from Bernarnd … Read more