Mark Hulbert has a piece this morning at MarketWatch in which he de-correlates the first Fed interest rate hike from any supposedly corresponding stock market movements. I agree with some but not all of what he writes. Let’s take it a chunk at a time.
Investors, it doesn’t matter when the Fed raises rates
Are you obsessed with whether the Federal Reserve will begin to raise official interest rates in July, September or sometime next year?
Open Letter to the New Finance Minister of Greece Yanis Varoufakis
(This letter ran on the following notable blogs: Zerohedge, David Stockman’s ContraCorner, Dmitry Orlov’s Blog, and The StealthFlation Blog)
The StealthFlation macro market minute WAG:
On the old continent, this December 29th, a succinct political showdown is scheduled to take place which may well become a defining moment for our entirely unsettled new millenium. What is at stake is none other than the prosperity of the common man pitted against the privilege of concentrated power. Lamentably, this deliberate dogmatic divide has relentlessly defined human civilization for the ages. (more…)
Here we are going into what should be by all accounts one of the most festive times of the year. If one were to listen to most of the commentary coming from the mouths of what are proclaimed as the “smart-crowd” you would think we should be dancing in the streets, buying everything, and anything within arms reach, and much, much more.
Yet, anyone who owns, runs, or works for a business will tell you in private they are either paralyzed by uncertainty, or worse, they’re just scared to death. It just seems nothing makes sense as to what they know – and what they’re being told they should believe.
I talk directly with people who are entrepreneurs and business professionals. One glaringly impression that gets made to me over, and over again, is they literally can’t make heads or tails out of not only who to believe, but also what data to believe. (more…)
The more one learns, the more cynical one becomes. Take for example slimey Congressman Jim Himes whose machinations are mentioned in this ZH article. Simply stated, he has cheerfully exchanged his ethics for campaign contributions from the big banks, like, oh, say….
What a glorious global economic gala! Apparently, contracting world GDP growth, monumental sovereign debt loads, ballooning central bank balance sheets, crashing commodity prices, competitive currency devaluations and synthetically suppressed interest rates, as far as the eye can see, are all great tidings to be joyously celebrated throughout this holiday season. Well, at least that’s the takeaway according to the whooping wonderful world of capital markets. Have no fear, all is perfectly in order. Jamie Dimon, Jim Cramer, Larry Fink and Company all have our back. The rest of us mere mortals are simply supposed to stand aside and take their professional word for it, silently sipping the financial establishment’s spiked eggnog until we attain a sheepish state of stupid stupor. After all, the money experts at the Fed are on the case, what could possibly go wrong? (more…)