Quantitative Easing Headlines

  • The Approaching Silicon Valley Meltdown

    Authored by Mark St.Cyr, To say that we are living through precarious times seems to be an understatement. Whether one lives in the so moniker’d “developed world, emerging, or frontier” there seems to be one constant currently: No one seems to be able to accurately ponder what tomorrow may bring, whether its political, economical, social, or combination there of. The only thing constant right now is one of two things: Either, further instability is on the horizon. Or, complete and utter chaos is...

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  • The Stage Has Been Set For The Next Financial Crisis

    Authored by Constantin Gurdgiev via CaymanFinancialReview.com, Last month, the Japanese government auctioned off some US$4 billion worth of new two-year bonds at a new record low yield of negative 0.149 percent. The country’s five-year debt is currently yielding minus 0.135 percent per annum, and its 10-year bonds are trading at -0.001 percent. Strange as it may sound, the safe haven status of Japanese bonds means that there is an ample demand among private investors, especially foreign buyers,...

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  • Why Australia's Economy Is A House Of Cards

    Authored by Matt Barrie via Medium.com, Co-authored with Craig Tindale. I recently watched the federal treasurer, Scott Morrison, proudly proclaim that Australia was in “surprisingly good shape”. Indeed, Australia has just snatched the world record from the Netherlands, achieving its 104th quarter of growth without a recession, making this achievement the longest streak for any OECD country since 1970. Australian GDP growth has been trending down for over forty yearsSource: Trading...

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  • Axel Merk: Tax Reform Implications For Gold

    Authored by Axel Merk via Merk Investments, Last week, I got several calls asking me how U.S. tax reform will impact the price of gold. If you can answer this question, you might be able to answer how tax reform will impact other assets. Let me explain. If you were to analyze the impact of any tax changes on any asset, you have two sets of dynamics to consider: those of the tax reform and those of the asset. What makes the comparison to gold unique is that gold is, if I may call it such, the...

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  • White House Considering Mohamed El-Erian For Fed Vice Chair

    In what will come as a big surprise to many Fed watchers, moments ago the WSJ reported that among other candidates, Mohamed El-Erian, former deputy director of the IMF, former head of the Harvard Management Company, Bill Gross' former partner at Pimco until the duo's infamous falling out, and one of the few people who - together with John Taylor - actually deserve the nomination, is being considered for the Fed Vice Chairman role. DJ also added that Kansas banking regulator Michelle Bowman is...

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  • Some Non-Hyperbolic Junk Talk

    Authored by Kevin Muir via The Macro Tourist blog, If you are looking for some breathless post about the recent collapse of the junk and high-yield market over the past couple of weeks, then click somewhere else. I know it makes for exciting writing, but I won’t do it. There is already more than enough hyperbolic rhetoric filling the financial airwaves. But the really amusing part? Have any of these doomdayers actually had a look at the return of these bond markets over the past year? I hate...

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  • GPIF Is About To Bite Back

    Authored by Kevin Muir via The Macro Tourist blog, A few years ago, the Japanese government made an announcement that went unnoticed by many market pundits. Since then, although there have been a few strategists who have speculated on its impact on risk assets, on the whole, it’s not something that gets a tremendous amount of attention. And that’s a mistake because it has had an immense effect on markets. In October of 2014, the world’s largest pension plan, the enormous Japanese GPIF...

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  • Sam Zell Is Stumped: "For Amazon's Value To Be Justified, It Has To Be Worth 25% Of The US Economy In 5 Years"

    When it comes to the last financial crisis, few timed the peak quite as well as Sam Zell, who sold his Equity Office Properties Trust, the largest office REIT, to Blackstone in 2007, literally days before the bottom fell out of the market. So, with Goldman dying to know when the next crash will take place, it is no surprise that it picked Zell as one of the people to ask. Unfortunately, Zell was unable to provide the much desired answer, and instead when Goldman's Allison Nathan asked him "how...

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  • Goldman's Top Strategist Reveals The Two Biggest Risks To The Market Today

    The past few months have been a very nervous time at Goldman Sachs, and not just because Gary Cohn wasn't picked to replace Janet Yellen as next Fed chair. Back in September, Goldman strategist Peter Oppenheimer wrote that the bank's Bear Market Risk Indicator had recently shot up to 67%, prompting Goldman to ask, rhetorically, "should we be worried now?" The simple answer, as shown in the chart below, is a resounding yes because the last two times Goldman's bear market risk indicator was here,...

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  • Forget B.T.F.D., It's Time To B.U.T.T.

    Authored by Kevin Muir via The Macro Tourist blog, I haven’t written about it much, but I have long been a closet uranium bull. Yeah, maybe I wrote one piece - Somewhere Cheap to Hide, but it’s not like I have been pounding the table on the idea. Although it has been obvious for everyone to see that the industry could not continue operating with the price of the commodity trading below the cost of production, the problem has been that no one wanted to cut. So even though it was illogical,...

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  • Uh-Oh...Draghi's Ammunition To Buy Italian Bonds Before The Election Is Less Than We Thought

    Having successfully pulled off the announcement of the ECB’s “dovish taper” – where monthly bond purchases will be halved to Euro 30 billion from January 2018 – last month, a challenge for Mario Draghi in Q1 2018 has appeared on his radar. The ECB’s bond buying ammunition is slightly less than analysts thought and there is the small matter of the looming Italian election. The latter is likely to be held in March 2018, although it could take place as late as May. Veteran strategist, now Bloomberg...

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  • "No Information Content": Goldman Explains How The Fed Broke The Market

    When looking at variations in the short and long-end of Treasury curves in Europe versus the US, Goldman's Francesco Garzarelli has made a remarkable observation: whereas market expectations of the trajectory for monetary policy in the US and Euro area continue to diverge, manifesting in a growing delta in short-end yields, the correlation of returns on long-dated bonds on the two sides of the Atlantic remains very high. The explanation for these cross-country dynamics, according to Goldman, can...

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  • Platinum Bullion 'May Be One Of The Only Cheap Assets Out There'

    Platinum Bullion 'May Be One Of The Only Cheap Assets Out There' Platinum "may be one of the cheap assets out there" and "is cheap when compared with stocks or bonds" according to Dominic Frisby writing in the UK’s best selling financial publication Money Week. Platinum Bullion in USD (15 years) Frisby writing in Money Week laments the total absence of value in today’s markets. He then identifies an asset that is both cheap (on a relative basis) and is valuable and the article is well worth a...

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  • Bitcoin, Blockchain, And Bank Of America

    Authored by Chris Whalen via The Institutional Risk Analyst, During our travels over the past two weeks, we tried to keep up with the financial press, particularly the growing sense of unease felt by many observers with the relentless rise of valuations for equities and other asset classes engineered by the Fed and major central banks.  Suffice to say the number of queries we receive about bank stocks being overvalued has soared. Last week saw some real gems from the world of crypto currencies. ...

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  • The Fed Balance Sheet Unwind Myth

    Authored by Lance Roberts via RealInvestmentAdvice.com, Since the beginning of the year, the Federal Reserve has been heavily discussing, warning rather, they were going to begin to “unwind” their gargantuan balance sheet. As Michael Lebowitz recently penned in his subscription-only article “Draining The Punchbowl:” “Since QE was first introduced, the S&P 500 has gained 1,546 points. All but 355 points were achieved during periods of QE. Of those remaining 355 points, over 80% occurred after...

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  • IceCap Asset Management: "We Are About To Witness The Financial Market Movement Of A Lifetime"

    IceCap Asset Management's Monthly outlook on global investment markets: October 2017, submitted by Keith Decker of IceCap Asset Management “Should I Stay or Should I Go?” Darlin’ you got to let me know During the 1970s, The Clash pushed rock and roll to the edge. Their hard charging, explosive, and anger-filled style, inspired spiked hair, rocked generations and forced people to question conventional thinking. Along the way, they rocked the casbah. They called London. They got lost in a super...

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