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
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
The British pound has gained a modest 3.5% since early June when I removed my long-standing bearishness on the currency. The momentum in the pound accelerated somewhat after last Wednesday’s release of the Bank of England’s minutes showed Andrew Sentance dissented from the rest of his fellow central bankers by calling for a rate hike. … Read more
In December, 2009, Federal Reserve Chairman Ben Bernanke insisted that gold’s surge was not signaling increased inflation expectations because it was simply following along with the general rise in commodities. Now that gold stands head and shoulders above the commodity pack, Bernanke is expressing his bewilderment at gold’s strength. Gold is still not a signal … Read more
For many commodity-related stocks the bounce from the March, 2009 lows to the first peak in June encompasses the bulk of their respective gains in the past 15 months. The current, on-going correction has delivered such heavy losses to some of these stocks that they are now trading at those June, 2009 prices. About 1/3 … Read more