MARKET CURRENTS
real-time news and commentary for investors
MARKET CURRENTS
Flip Order
-
Tuesday, May 22
-
7:53 PM Vanguard's Jack Bogle takes advantage of Facebook's (FB) plunge and the negative impact it's had on the psyche of the retail investor to hammer home the merits of index investing. Bogle says: "It all comes down to value and it all goes away from price, and avoiding IPO's and avoiding individual stocks is the best strategy for investors." (video) 38 Comments
-
7:24 PM As concerns grows on the economic front, former Council of Economic Advisers Chairman Martin Feldstein says the dangers are all too real. We're stumbling along right now, Feldstein says, and the folks forecasting 3% growth are far too optimistic. "We'll be lucky if we have 2%." As for the "economic cliff" we're facing in 2013, if everything that's due to expire expires, it will in fact be an economic disaster. (video) 6 Comments
-
5:06 PM The CBO warns about the "fiscal cliff," saying the U.S. economy would enter another recession in H1 2013 if planned tax increases and spending cuts are allowed to go into effect in January. CBO projects the economy would contract 1.3% in H1; if all the spending cuts and tax increases are removed, CBO says the economy would add 2M jobs in 2013 and U.S. GDP would grow 4.4%. 11 Comments
-
3:49 PM Morgan Stanley housing strategist (there are any left on Wall Street?) Oliver Chang is leaving the firm to set up his own single-family housing rental fund. "I believe it represents one of the most compelling investment opportunities available across all asset classes today." Comment!
-
3:35 PM "Sell your house ... yesterday," Gary Shilling tells Bloomberg. It will take 4 years, he says, to work off still-high inventories, during which time prices could fall another 20%. Turning to Facebook: "(It's) the end of the social media boom ... reminds me of Pets.com." 32 Comments
-
1:22 PM Alaska, Texas, Louisiana and North Dakota have returned to their peak pre-recession employment levels, a new analysis from IHS Global Insight shows, with 16 set to do so by the end of 2013. The formula for success includes avoiding the housing bust and having lots of oil and gas. 3 Comments
-
1:04 PM The Treasury sells $35B in two-year notes at 0.300%. Bid-to-cover ratio of 3.95, vs. a recent average of 3.69; indirect bidders take 33.5%, vs. a recent 33.8%. Direct bidders take 9%, vs. a recent 14.4%. Comment!
-
12:50 PM While not arguing against the reinstatement of Glass-Stegall, Andrew Ross Sorkin looks to explode the "myth" that it would have prevented the financial crisis. Bear Stearns, Lehman, Merrill Lynch, AIG, Fannie Mae and Freddie Mac had nothing to do with Glass Stegall, nor did the provision of lots of dodgy loans. 2 Comments
-
12:35 PM Three lunchtime reads:
1) Where are gold prices headed: flat, down or up?
2) Smack! The BRICs hit a wall of their own making
3) Fed pondering why inflation and deflation threats ebbed Comment! -
12:26 PM Eaton's (ETN) proposed incorporation in Ireland once its completes its $11.8B acquisition of Cooper (CBE) will allow the combined company to enjoy the country's 12.5% corporate tax rate, saving $160M a year. Eaton will follow seven other U.S. companies that in recent months have renounced their U.S. corporate citizenship through relocation. 5 Comments
-
12:06 PM "The bar ... should remain high," says Atlanta Fed President Lockhart, responding to questions about further QE. "I would have to see a serious deterioration of the economy ... "real layoffs, real job destruction," he adds, suggesting it's going to take more than a few weeks of falling stock prices to spur him on. 3 Comments
-
-
10:18 AM More on Existing Home Sales: Seasonal supply at 6.6 months, up from previous level of a 6.2-month supply. The national median existing-home price for all housing types jumped 10.1% Y/Y to $177,400. Foreclosures and short sales sold at deep discounts accounted for 28% of monthly sales, down from 37% a year ago. 5 Comments
-
10:03 AM April Existing Home Sales: +3.4% to 4.62M vs. 4.66M expected, 4.47M prior (revised from 4.48M). 4 Comments
-
10:00 AM May. Richmond Fed Mfg. Survey: -10, to 4 (above 0 = growth). Shipments -18 to 0, new orders -12 to 1, jobs +6 to 16. 4 Comments
-
8:41 AM While "re-shoring" may be happening, it's not creating that many jobs. A case in point: Whirlpool returning the production of its KitchenAid hand mixers brought just 25. Harry Moser of the Reshoring Initiative reckons 25K jobs have returned to the U.S. in recent years and thinks that the potential is far greater. 1 Comment
-
8:10 AM ICSC Retail Store Sales: -1.7% W/W, vs. -0.8% last week. +3.8% Y/Y, vs. +4.5% last week. The report notes little positive effect from favorable weather or from lower gas prices. 1 Comment
-
6:31 AM U.S. stock futures reverse early moderate gains after Fitch cuts Japan's credit rating. S&P -0.2%, Dow -0.2%. 1 Comment
-
4:22 AM Coming from the OECD's live twitter stream, "we need decisive policy action now" but "we're aware of the political economy of some of these problems. The scope for macro-economic policy is virtually exhausted." The OECD released its revised economic outlook just moments ago, warning the recovery is both fragile and uneven. (more) 2 Comments
-
4:15 AM The OECD cuts its 2012 eurozone GDP forecast to -0.1% from +0.2%; U.S. forecast raised to +2.4% from +2%; China to come in at +8.2% this year, +9.3% next year; Greece -5.3% this year, -1.3% next year; Japan +2% this year, +1.5% next year. Joins calls for eurozone bonds. (OECD economic outlook report) Comment!
Other date
Latest Macro Articles
