Unprecedented government intervention has resulted in a relative calm in markets of late. This intervention is best visualized by reviewing the sectoral balances work. As the de-leveraging process continues government [ … ]
Category: Chart Of The Day
(Just Charts)
THE DUMB MONEY IS BULLISH
As you can see, a yawning 50-point gap opened at year-end between the two measures of confidence, with dumb money optimism having soared, while smart money optimism became decidedly more subdued.
EQUITY BORROWING SURGES
With an overly financialized economy addicted to debt it’s only appropriate that the equity markets would be fueled by rising debt levels. According to Bloomberg margin debt is rising at [ … ]
AAII: SMALL INVESTORS SHIFTING OUT OF BONDS
Small investors continued to migrate out of bonds, but did not move into equities according to the latest AAII allocation survey. Total equity allocations declined a bit on the month [ … ]
THE LONG ROAD BACK TO FULL EMPLOYMENT
Without a surge in domestic aggregate demand (something that appears unlikely given the unusual debt dynamics at work) we are unlikely to see anything approaching full employment until 2016 or beyond….
5 BULLISH AND BEARISH CHARTS FOR 2011
It’s now looking like the global economy has some positive momentum and could continue to surprise to the upside. But that doesn’t mean the world is now without risks. Although [ … ]
LEHMAN BROTHERS – NOW & THEN
With the S&P 500 officially filling the Lehman gap this week it’s interesting to take a look back at now and then. While much of the economy is far worse [ … ]
IF PAST IS PROLOGUE….
Past is prologue….At least that’s what strategists at CitiGroup are saying. In a recent note they highlighted the 3 past market environments that most closely resembled the current environment. If [ … ]
INFLATION TRENDS STILL TRENDING DOWN
The latest from the San Francisco Fed shows that a broad set of inflation indicators continue to trend lower. Despite massive intervention the Fed has been unable to generate any sort of substantial move higher in inflation rates: