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  • Finance 0

    US Bond Market Week In Review: Treasuries Continue To Rally

    Chairperson Yellen gave her bi-annual Congressional testimony this week, which contained the following two key paragraphs: Financial conditions in the United States have recently become less supportive of growth, with declines in broad measures of equity prices, higher borrowing rates for riskier borrowers, and a further appreciation of the dollar. These developments, if they prove persistent, could weigh on the outlook for economic activity and the labor market, although declines in longer-term interest rates and oil prices provide some offset. ….. As is always the case, the economic outlook is uncertain. Foreign economic development...
    On February 14, 2016 / By
  • Finance 0

    Under Armour Endorsement Pipeline Looks Promising

    2015 was an incredible year for Under Armour (UA) with Steph Curry and Jordan Spieth’s breakout performances. Under Armour is continuing this momentum right into 2016 with the Golden State Warriors looking for back-to-back titles, and Jordan Spieth winning the first golf tournament of the year in record fashion. Cam Newton has emerged as another key endorsement for UA as he led the Panthers to their second superbowl and won the regular season MVP award. Newton is a highly marketable athlete, he has the 2nd most endorsements in the NFL behind Peyton Manning.  Cam Newton was a star QB at Auburn (an Under Armour Sponsored school) and seam...
    On February 14, 2016 / By
  • Finance 0

    Moody’s Mood? Gloom And Doom

    The downturn in commodities has rippled across all asset classes, especially the credit markets. There’s no light at the end of the tunnel, either, as Moody’s Investors Service sees more negativity ahead. On February 4, Moody’s presented its findings in a panel sponsored by the Fixed Income Analysts Society (FIASI), entitled “Commodity Downturn Intensifies.” According to Group Credit Officer Mariarosa Verde, the commodity crisis is occurring during a more mature credit cycle. That means growing stress among commodities poses a great danger to the cycle itself. After several years of declining commodity prices, the pace of deteriora...
    On February 14, 2016 / By
  • Finance 0

    Economic Events Of The Coming Week – 2/15/2016

      Monday: Preliminary fourth quarter Gross Domestic Product data will see light in Japan. Analysts see a 0.8% annualized contraction of the economy eroding much of the previous quarter’s gain. December’s Final estimate for Industrial Production will also see light in Japan, as will the Tertiary Industry Index. ECB President Draghi is scheduled to speak in a European Union Parliament Committee. Tuesday: January’s Consumer Price Index will be released in the U.K – analysts see annual inflation recover somewhat, to 0.3%, from a current 0.2%. January’s Producer Price Index will also see light in the U.K. In Germany, February’s ZEW ...
    On February 14, 2016 / By
  • Finance 0

    The World Is Not Ending (Yet), Panic To Subside

      Investors have become unhinged. The increased volatility and dramatic market moves challenge even the most robust investment strategies. This sets off a chain reaction of money and risk management that further amplifies the price action, like an echo chamber. Then a cottage industry of reporters, analysts and bloggers offer explanations often without distinguishing the initial sound from the echo. At the same time, that which we have come to think of as terra firma has turned into quicksand. Interest rates are bounded by zero. Of course, there had been a few exceptions, like when Germany and Switzerland in the 1970s discouraged speculati...
    On February 14, 2016 / By
  • Finance 0

    US Equity And Economic Review: The Data Points To A Slowdown, Not A Recession

    Recent market and statistical weakness has led to increased discussion of a possible US recession.In this column, I will argue that instead of a recession, we’re facing a situation similar to the mid-1980s, where the economy also experienced slowdown caused by high oil prices, a strong dollar slowdown and weak oil sector.But there is insufficient weakness – largely thanks to continued housing market strength and recent wage growth – for a recession to occur. Let’s start with the Q/Q growth numbers: Between 1Q15-4Q15, personal consumption expenditures (PCEs) fluctuated between .6% and 3.9% Q/Q growth. Durable goods purchases varied be...
    On February 14, 2016 / By
  • Finance 0

    Forex Forecast: Pairs In Focus

    The difference between success and failure in Forex trading is very likely to depend upon which currency pairs you choose to trade each week, and not on the exact trading methods you might use to determine trade entries and exits. Each week I am going to analyze fundamentals, sentiment and technical positions in order to determine which currency pairs are most likely to produce the easiest and most profitable trading opportunities over the next week. In some cases it will be trading the trend. In other cases it will be trading support and resistance levels during more ranging markets. Big Picture 14th February 2016 Last week I highlighted lon...
    On February 14, 2016 / By
  • Finance 0

    Why Most Investors Hate Gold

    The move in gold, up 17% year to date, is important, according to ConvergEx’s Nick Colas… We’ll be blunt: most financial asset investors really hate gold. Anything – even leaving money in the bank – is better than owning gold since at least society has access to your capital through the banking system.  Once you buy physical gold, no one has access to that sliver of your portfolio. Of course, that’s actually a feature for the owner since physical gold is no one else’s liability.  So the notable rally in gold is essentially a protest vote against the global financial system, the equivalent of taking your ball and g...
    On February 14, 2016 / By
  • Finance 0

    Market In-Review: Taming The Bear

      ? Stocks continue to bleed amid global flight to safety ? Concerns of large banks becoming insolvent ? Oil touches lowest level since 2003, but manages to recover on Friday ? Gold surges 5.5%, to highest in more than a year ? Yellen puts negative U.S. rates on the table Markets endured yet another global selloff this week. The S&P 500 (SPY) decreased by 0.8% during the week, visiting as much as a 3.7% decrease, on Thursday, from the previous Friday’s close. Volatility has been substantially large at banks too. Bank of America (BAC) traded by more than a 15% loss for some time on Thursday’s session, touching its lowest levels since ...
    On February 14, 2016 / By
  • Finance 0

    EUR/USD Faces Pullback Threats On Loss Of Momentum

    EUR/USD: Although holding on to its upside offensive, EUR/USD faces pullback threats on loss of momentum at the end of the week. On the downside, support is located at the 1.1200 level and if violated, expect more weakness to happen towards the 1.1150 level. Further down,  support lies at the 1.1100 level where a violation will aim at the 1.1050 level. A break of here will aim at the 1.1000 level. On the upside, resistance is comes at 1.1300 level with a cut through here opening the door for more upside towards the 1.1350 level. Further up, resistance lies at the 1.1400 level where a break will expose the 1.1450 level. All in all, EUR/USD fa...
    On February 14, 2016 / By