With inflation creeping up, we have to be particularly alert for rising inflation expectations. It is important that inflation expectations remain stable. If those expectations become unhinged, they could rapidly fuel inflation. Moreover, as we learned from the experience of…
As we work through a pretty slow day as investors try to get their bearings after yesterdays huge selloff, here are some things I’m looking at and thinking about: A lot of stocks are cheap. We aren’t dealing with the…
“Expectations of further Fed cuts continue to support the precious metal, and traders feel bullion can break the $950 mark in coming weeks. Some even suggest that gold may jump as high as $1000 an ounce in a couple of…
After the close yesterday, Citigroup announced that it will provide a support facility for its Structured Investment Vehicles (SIVs), off balance sheet investment vehicles, which will result in its consolidating their assets and liabilities onto its own balance sheet (C…
After the close yesterday, one of the biggest, most important and still beloved tech stocks, Intel (INTC), king of the semiconductors, reported what can only be described as an excellent quarter (3Q Press Release). The most impressive number in my…
“The [consumer price index] is what spurred this rally. We lost a lot of the gains [to record highs] and now we’re getting them back.” – Jim Herrick (subscription required), Head Trader, Robert W. Baird So the Consumer Price Index (CPI)…
“People were fearing disaster [in this morning’s Producer Price Index (PPI) report]. They got a report that wasn’t too far from the consensus, and it led to a rally.” – Brian Reynolds (subscription required), Chief Market Strategist, MS Howells May Core PPI…
It’s looking like another good week for the stock market. Here’s how the action looks through 4 days: Dow: +151, to 13,477 S&P: +7, to 1513 Nasdaq: -23, to 2539 Russell 2000: -14, to 816 Again, we are seeing the…
I did want to follow up on my post about preliminary 1st quarter 2007 Real GDP which the Commerce Department reported as 1.3% before the open last Friday. To answer my question, “Does The Economy Matter?”, the answer, at least…
Gold closed at $695.80 today according to Bloomberg. Peter Grandich, editor of the Grandich Letter, wrote (subscription required): A near perfect storm has aligned both technically and fundamentally for gold. A test of the 2006 highs around $735 is not a…