Investors have officially become convinced that stocks do not decline. Sentiment readings are literally off the charts this week with the AAII small investor bullish sentiment survey surging 9% points to 57.6%. That’s the highest reading since January 2007.
Category: Chart Of The Day
(Just Charts)
IRISH 10 YEAR YIELD HITS NEW HIGHS
In fantasy land the central bank can always come in and resolve any financial woes. Got a mortgage problem? No problem. Can’t afford to your budget this year? No problem. [ … ]
THE UNINTENDED CONSEQUENCES OF QE2 – IRISH EDITION
The continuing European sovereign debt crisis is just one more reminder that government can’t perpetually bailout the entire world. The problems in periphery Europe have not been resolved and will likely not be resolved until some tough decisions have been made. Until then, we continue to whistle past the graveyard.
AND NOW BACK TO YOUR REGULARLY SCHEDULED BUBBLE
Oil in US dollars may be trading closer and closer to its bubbly 2007 highs — at about $86.47 a barrel on QE2-caused dollar weakness — but the commodities picture is even starker elsewhere. Take a peak at the (weekly) Diapason Commodities Index in sterling.
DID QE CAUSE EQUITIES TO MOVE HIGHER IN JAPAN?
In fact, anyone buying in front of the QE announcement in Japan ultimately got crushed in the ensuing few months and years. When the BOJ initially announced the program in March 2001 the equity market rallied ~16%. But the euphoria over the program didn’t last long. In the ensuing two years the Japanese stock market fell a staggering 43%!
EUROZONE PERIPHERY SPREADS SURGING AGAIN
Boy does this feel like April 2010 or what? The market melts higher just about every single day while obvious risks to the macro picture continue to also rise. The [ … ]
THE 9 YEAR HOUSING DROUGHT
107: How many months it would take to sell banks’ current and shadow inventory of foreclosed homes.
WHO HAS THE PRICING POWER?
One of the many unintended consequences of QE appears as if it will be margin contraction. As input costs surge in recent weeks it will become even more important than [ … ]
CASE SHILLER DATA CONFIRMS HOUSING WEAKNESS
Today’s Case Shiller data confirmed recent reports of weakness in housing. Although the Case Shiller report lags by one month the data showed signs of weakness that have also been [ … ]