If a bond has a negative yield, then the bondholders will lose their money on their investment. In the long run, their expectations are lower and consequently they lose the incentive to invest — which may have far-reaching repercussions. Green Bonds Are Changing Investor Expectation’s The rapid growth of the green bond market has sparked interest from many audiences. What are green bonds? Using debt capital markets to fund climate solutions. Green bonds were created to fund projects that have positive environmental and/or climate benefits. The majority of the green bonds issued are green “use of proceeds” or asset-linked bonds. In ...
Notice from the charts that the equities have by and large been chopping sideways in a range for the last couple of weeks. I expect some action towards the month end this week, and of course around the Non-Farm Payrolls, but no real moves until September and October. The market is fully valued fundamentally, but with the central banks cramming liquidity top down through the financial system there is no telling what the financialized economy may do, and how far it may diverge from the real economy. That is the very definition of a bubble: too much money mispricing risk too greatly. Have a pleasant evening....
Here is the daily BKX stringing several up days together, but starting to get over bought. I have held the Regional Bank fund KRE since BKX boinked the trend line and lateral resistance (now support).Below is the weekly multi index chart it occupies along with the Semi and Biotech indexes. The key level was the May high, which is getting taken out today. But in this bipolar market sometimes these things that every damned trader on the planet sees, signal reversals (look no further than the BTK chart in the bottom panel).For now however, BKX is buying the interest rate story. As to the other chart inhabitants, I’ve held and traded the Semis ...
The Problem Let’s keep it simple – no need to get into the details to understand what this and other international corporate income tax disputes are all about. Apple’s CEO Tim Cook said: “A company’s profits should be taxed in the country where the value is created.” He is right. And that is the rub. Lawyers will argue. But it is not really possible to locate where value is added if a company produces in one location and sells in another. Why? Because you need both production and sales for value/profits to be generated. This is not a new problem. States in the US have been dealing with it for many years. 44 US states have corpora...
The Swiss central bank is now the eighth largest investor in publicly traded shares of Facebook following the Swiss Central Bank Buying Spree. Switzerland’s central bank now owns more publicly-traded shares in Facebook than Mark Zuckerberg, part of a mushrooming stock portfolio that is likely to grow yet further. The tech giant’s founder and CEO has other ways to control his company: Zuckerberg holds most of his stake in a different class of stock. Nevertheless this example illustrates how the Swiss National Bank has become a multi-billion-dollar equity investor due to its campaign to hold down the Swiss franc. It is now the world’s ei...
For a central bank, deflation is the starting point which makes inflation the emphasis. So long as there is a “small” amount of positive inflation then economists have suggested deflation, thus depression, becomes impossible. The reason for that belief is twofold, first having to do with the margin for “error”; that is a small positive inflation rate acts as a buffer with which monetary policy can react before any disinflationary impulse or shock gets out of hand. Primarily, however, the assumptions of orthodox economics are built upon expectations regimes. By targeting a 2% inflation rate and keeping to it, a central bank builds up a...
Since Apple decided it would be a great idea to try to dodge U.S. taxes, they’re now getting pummeled by European tax authorities many years later. In other words, the money that might have flowed to our own country is instead going to Europe. Well done, Apple. You can take that smug, stupid “Designed in California” notice off of all your packaging, since it’s pretty evident you’re not really not that hung-up on loyalty to your native land. Schmucks. Anyway, AAPL (which I am short) has been putting a damper on the NQ all day, and it’s starting to show....
The market is actually seeing a mild amount of selling today, even though it really isn’t anything to really brag about. S&P 500 (SPX) is back below the 20-day moving average which has been key to a sell-off all along. You have to be careful about not adding too many shorts at this point in your trading. Yes, the market does look like it wants to go lower, but we have seen this scenario PLENTY of times in the past and it hasn’t always played out that way. For me, I’m adding a little more to my shorts as the market inches its way lower. And by “inches”, I do mean inches. So open yourself to some short opp...
I’m going to use the GDX as a proxy for the rest of the PM stock indexes. I can now say with a fair amount of confidence that the first consolidation phase is taking place. Lets start with just a simple daily chart for the GDX which is showing a small unbalanced double top with the right high being higher than the left high. Five days ago the price action gapped below the double top trendline and last Friday the GDX backtested the double top trendline from below. The price objective for the unbalanced double top is down to the 24.50 area. This is how the beginning phase of a consolidation pattern begins to build out. In fairly large consol...
Hey, everyone! Every month, we live in a world that we pay for our expenses on a typical monthly basis. Most people budget monthly based on their food, shelter, car and other entertainment or daily needs. You know what I personally love about my bills? If something else is paying them for me! One fun way and reason to invest into dividend paying stocks is to almost view them as a way to build up an asset that pays these bills for you! What do I mean? Let’s check it out. Paying the Bills We all have our monthly expenses that are typical. I wrote about some of my monthly bills a few months back, as a way to update where I stand on how muc...