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Financial Markets Overview
In Greek mythology, Sisyphus was a king punished by the gods. In the Greek equivalent of hell, named Tartarus, Sisyphus was cursed to roll a huge boulder up a hill – only to watch it roll down the hill again. Sisyphus’ punishment was to repeat this task throughout eternity.
In the midst of this punishing bear market, I think that many investors who read Bourbon & Bayonets are probably feeling like Sisyphus right now. Many investors have seen their accounts, such as their 401k, back down to levels last seen a decade ago. Like Sisyphus, they have had their investment accounts…
23Feb2009 | Oxbury Research | 0 comments | ContinuedThe Last Bastion of the U.S. Economy Is In Full Retreat
In previous economic slowdowns, it was always consumer spending that kept the American economy afloat. Millions of Americans continued shopping at malls, buying cars, ordering gadgets through the mail and TV and otherwise putting their wallets and purses on the line. It was always the brave American consumer rushing unto the breach to beat off the demons of economic gloom and uncertainty.
But not this time, it seems. Retail sales have now declined for the sixth straight month.
The U.S. Census Bureau announced that advance estimates of U.S. retail and food services sales for December (adjusted for seasonal variation and holiday and…
15Jan2009 | Oxbury Research | 0 comments | ContinuedFED has a dilemma
On Tuesday, the Federal Reserve took the somewhat expected but extreme step "to establish a target range for the federal funds rate of 0 to 1/4 percent." Included in its policy statement was an additional bit – “The Committee is also evaluating the potential benefits of purchasing longer-term Treasury securities.”
Think about that for a second. We’ve got 10-year Treasury bonds yielding only about 2%, and the Federal Reserve is “evaluating the potential benefits” of purchasing them? While that statement may have been intended to encourage a further easing in long-term interest rates (to which mortgage rates are tied), the…
23Dec2008 | The Real Deal | 0 comments | ContinuedYield Spread Schizophrenia
Amid all the panic and gloom of the holiday season there’s actually some news out there that’s worth looking at. No, not the next dip in the automaker-fed tango, nor the punch-it-up, self-absorbed gab surrounding the Madoff blow-up. We couldn’t give a puckered cherry about either.
The real news these days is happening under the radar, in the bond market, where peculiar pressures are sending confusing messages to traders and investors alike.
Powerful Fund Flows To Treasuries
It’s no secret that the global flight to quality that took place over the last several months landed hundreds of billions of new dollars in the…
23Dec2008 | Oxbury Research | 0 comments | ContinuedWall Street, J. P. Morgan, Warren Buffett, and Elton John
This past week’s approximately $2 trillion pledge of support for their financial markets by the Europeans has stabilized the global financial markets somewhat. Commercial paper and LIBOR rates have fallen a bit. All is not well however. US mortgage rates rose by a half per cent. This may further weaken the housing market and send another tsunami wave through bank balance sheets.
By the way, if the Europeans are going to spend $2 trillion to “fix” their financial problems, how in the world will a measly $700 billion fix the financial problems in the US? After all, the US is…
20Oct2008 | Oxbury Research | Comments Off | ContinuedJim Rogers calls long dated US Treasuries last great bubble
Bloomberg
10/14/08
Wes Goodman and Anchalee Worrachate
The risk is that yields rise as the U.S. increases debt sales to fund the bank rescue plan and pumps money into the economy, said investor Jim Rogers, chairman of Rogers Holdings and former partner of hedge fund manager George Soros who forecast the start of the commodities rally in 1999.
"The U.S. government is taking on gigantic amounts of debt,” Rogers said in an interview in Singapore, where he lives. "They’re printing gigantic amounts of money. Printing money has always led to more inflation. The last bubble in the world that I can find is…
17Oct2008 | The Real Deal | 1 comment | ContinuedBig Bailout: What The Fed’s Decision Means For Stocks – And For You – And How To Profit From It Anyway
The bailout made it official: Other than the week of September 11, 2001, last week was the most memorable of my career.
By the time the closing bell rang on Friday, investors were exhausted after an astonishing week of crazy activity, as the stock market swung from enormous losses, due to the fallout of the Lehman Brothers bankruptcy and AIG mess, to equally remarkable rallies amid talk of a massive government bailout plan.
Like many others, I knew I’d need the weekend to digest and make sense of everything that happened. The only reprieve I got was taking my 7-year old son…
25Sep2008 | Smart Profits Report | Comments Off | Continued
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