ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Late August has become a benchmark for the success of the Federal Reserve’s last money-printing campaign given at that time Chairman Ben Bernanke first floated the suggestion that another round of quantitative easing (QE2) was on its way (see speech at Jackson Hole, WY, August 27, 2010). I am also using this date as a … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) Alix Steel, a reporter for thestreet.com, discussed gold on Nightly Business Report, July 26. She claimed that gold’s low volume, summer rally is being fueled by fears of a default on U.S. debt. Nevermind that … Read more
“Fed May Launch New Round of Stimulus.” So rang the headlines. The Federal Reserve seemed poised to launch another round of quantitative easing if only it had a weak economy to generate the proper excuse. An Associate Press article about steel stocks suggested that the market’s rally was specifically about the prospect of potential stimulus: … Read more
(Originally appeared in Inflation Watch) The Federal Reserve Bank of St. Louis just published an article written by James Bullard, a non-voting member of the Federal Reserve and President of the St. Louis Fed, called “Measuring Inflation: The Core Is Rotten.” It is based on a speech Bullard delivered two months ago to the Money … Read more
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) {snip} Two months ago or so, a friend directed my attention to Jeremy Grantham’s GMO Quarterly Newsletter for April, 2011 titled “Time to Wake Up: Days of Abundant Resources and Falling Prices Are Over Forever.” … Read more