‘Euro Farse’ Sat Update – “It was Grim. The worst mood I have ever seen. A complete mess”. The Final Act Moves to Wednesday

There is no way i can do justice to the issues around the euro at present. To do so would require a small book by way of monetary explanation and discussion. The issues are certainly deep and complex and their resolution or not is even more complex given the twists and turns by the eurocrasts …

Weekly Economic Indicators (WF) -14th Oct 2011

We continue to see no ‘off the cliff’ sort of declines in the leading economic indicators. Just as there was a disconnect earlier in the year as regards the weakening data and high equity valuations so too, on the lows of 2 weeks ago, there was a disconnect between the weak (though not disasterous) economic …

UBS Weekly Technical Update – ‘Multi Month Rally Within A Cyclical Bear – Buy Pull Backs’ 11th Oct

Apologies for the delay in posting up.. Ive been traveling between beach, mountain & city. Below the UBS technical view. Its a complex report this and contains many gems. The summary is sp500 above 1074 or so (on a closing basis) signifies the low is in for this wave of the cyclical bear. They suggest …

Weekly Economic Indicators (WF) – 7th Oct 2011

We are continuing to see a softening of the data rather than falling off a cliff data coming through. Well’s reviews the various reports, provides a snap shot international perspective and a mini tribute to Steve Jobs. WF-Economic-10072011 In my mind we have the ‘natural’ cycle that demands governments and consumers pay down debt and …

Households Increasingly Allocate Capital to Bonds & Cash

We have got the bounce in equities with all those different indexes bang at their supports as indicated. CRB etc.. I have leverage in my main investment account and ‘loaded the boat’ as said in the forum pages. (For clarity i do still have pockets of cash which i will allocate on market opportunities and …

BOE Prints More.. & Much More to Come

If you are surprised by this announcement i respectfully suggest you hit yourself firmly in the head and repeat over and over ‘ I am not a sheep, i am not a sheep, i am not sheep’. Rich http://www.marketwatch.com/story/bank-of-england-launches-more-quantitative-easing-2011-10-06-71040?dist=beforebell

‘Tax The Rich’ Is the Developed World’s New Mantra

http://www.businessinsider.com/italy-announces-higher-taxes-2011-9 http://www.guardian.co.uk/business/2011/sep/16/spain-raises-tax-on-rich http://www.washingtonpost.com/business/economy/obama-proposes-new-taxes-on-wealthy-for-half-of-debt-plan/2011/09/19/gIQATnkNfK_story.html http://www.guardian.co.uk/business/ireland-business-blog-with-lisa-ocarroll/2011/jul/27/property-tax-ireland-poll-tax http://business.financialpost.com/2011/08/24/france-cuts-growth-forecasts-raises-taxes-on-rich/ Name a DM country and you will see initiatives to tax the ‘rich’. Democracies merely rely on the majority verdict. If the majority want to expropriate everything from one or other group they can and often vote it through especially if media services pump the political spin. I flagged this …

International Equities.. ‘The Only Show in Town’

1) Corporate debt cheap and getting cheaper. The yield curve is flattening. Healthy corporate debt yields will likely fall alongside Treasury and MBS yields. 2) Corporate earnings to all other asset classes at extreme positive multiples. To cash or near cash companies yields are on multiples of 10 to 15. ie pes of 4 not …

Economic Indicators 30th Sept 2011 – WF pdf

Here below the WF weekly economic indicator report. In summary, the data this week mixed but given the very bearish expectations entering the week the data was a little better than expected with a good surprise in US PMI data and durables. Having said this the data continues to be weak but not the ‘off …

Consumer Credit.. Signs of Life..

http://uk.reuters.com/article/2011/09/29/uk-mortgage-approvals-idUKTRE78S16A20110929 http://www.marketwatch.com/story/30-year-mortgage-at-record-low-401-2011-09-29-100200?link=MW_home_latest_news And in the Wells Fargo analysis we saw yesterday that US consumer credit has increased mainly due to a mini boom in student credit. http://globalbasic.econoday.com/byshoweventfull.asp?fid=447264&cust=global-basic&year=2011#top Rich