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  • Finance 0

    How Crude Oil Has Pressured Emerging Markets In 2015. Look For A Sharp Recovery

    We have written extensively in recent weeks about the correlation between crude oil and stock markets. Our key finding was that, starting August 2014, stock markets sold off each time crude oil fell +10% in two trading weeks. Our finding was based on an analysis between crude and the S&P 500. Now we extend that analysis to emerging markets. As the chart shows, crude has literally dragged down emerging markets throughout 2015, after it started its 2nd phase of its collapse. With the outlook of a long term bottom in crude, we believe that emerging markets has a great outlook. However, not every emerging market can be bought, as there has be...
    On February 2, 2016 / By
  • Finance 0

    Why Is The General Population Financially Illiterate?

    It’s no secret that most people don’t know how to handle money. Personal finance is one of the primary categories of blogs on the internet today. That’s because it’s needed.  It’s highly needed.  And most people don’t even know where to start. People don’t understand things like the stock market, mutual funds, index funds or compound interest in general.  The average person doesn’t keep a budget, and they overspend on a daily basis. I know you don’t do that, but you may still be wondering why personal finance isn’t taught in schools, and why most people don’t have a clue when it comes to money. Here’s some in...
    On February 2, 2016 / By
  • Finance 0

    Health Care Analyst: How To Play The Current Biotech Market Ahead Of Earnings

    Welcome. We are pleased to be joined by Joe McCann, founder of Slingshot Insights. In this episode, Leigh and Joe discuss the current state of the health care industry, and look at quarterly expectations for upcoming biotech and pharma companies such as Gilead Sciences (GILD), Merck (MRK), Biogen Idec (BIIB), Celgene (CELG) and Pfizer (PFE). Audio Length: 00:30:20...
    On February 2, 2016 / By
  • Finance 0

    Exxon Mobil Posts Worst Results Since 2002

    Exxon Mobil (XOM) Corporation’s principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacturing of petroleum products and transportation and sale of crude oil, natural gas and petroleum products. Exxon Mobil is a major manufacturer and marketer of basic petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a wide variety of specialty products. Exxon Mobil is engaged in exploration for, and mining and sale of coal, copper and other minerals. We have been discussing the carnage in the global oil market for some time now. Today we can see how the huge ...
    On February 2, 2016 / By
  • Finance 0

    The One Asset Class That Matters

    The modern era of financial markets means that basically there are two assets: Risk On and Risk Off. The last two days we have been in Risk Off mode. We might switch to Risk On mode if the economic data reports coming support an optimistic view of the economy. Video Length: 00:06:43...
    On February 2, 2016 / By
  • Finance 0

    SP 500 And NDX Futures Daily Charts – Hard Down

    Stocks were on the downslide today after not so good economic news in the US this morning as noted in the economic calendar below, and perhaps more importantly another down day for oil. As you know I had suggested some time ago that we had made a short term bottom. And that we were likely to see a largely technical rally that might go higher than you might think, maybe 20-30% retracement. But unless something substantial changes in the global outlook, that then we might see that rally fail and we could go back down and not only retest the low, but set a new one. At the time I suggested we *could* see 1770 on the SP 500 futures. I’ll sti...
    On February 2, 2016 / By
  • Finance 0

    Great Graphic: Falling Equities And U.S. Treasuries Blunt Impact Of BOJ’s Surprise

    The yen is the strongest currency today. Many are still referring to it as a safe haven.However, this strikes us a misuse of the concept.Investors are not flocking to the yen to find quiet place to ride out the storm. Rather the yen’s strength is a reflection of the turmoil.  As we have explained the yen and euro have been used to finance the purchases of other assets. As those assets are liquidated, the funding currency is bought back. The dollar, euro and yen are the most common funding currencies and they are the strongest currencies today, and typically are during periods of market turbulence.   There are two factors we often rely...
    On February 2, 2016 / By
  • Finance 0

    Keeping An Eye On Bullion Supply And Demand

    A lot is riding on the demand side of the equation when it comes to metals’ price performance this year. Demand is the bigger wildcard with signals thus far being mixed in gold and silver bullion markets. The outlook for supply is more certain, and it isn’t pretty. Endeavor Silver, one of the largest primary silver mining companies, announced last week that it expects to reduce production of the white metal by roughly 30%. The company’s El Cubo mine is not profitable despite efforts to reduce costs. Endeavor plans to halt development and exploration at the mine and process accessible ore only. By year end, the mine will be p...
    On February 2, 2016 / By
  • Finance 0

    EC Personal Savings Up, Meaning No Energy ‘Tax Cut’

    If China and US manufacturing are suffering from what looks like the contours of a slowly progressing recession, we don’t have to go very far to find the genesis. The common denominator is and has been US consumers. That much is evident in very clear fashion through retail sales during the Christmas season that were abysmal. The BEA’s update for full PCE figures shows mostly the same, even though overall PCE is highly influenced by “services” spending in the form of imputations and, where evident, services in the form of a tax (health care). Real PCE spending was slightly negative in December month-over-month, which suggests another...
    On February 2, 2016 / By
  • Finance 0

    Negative Interest Rates Already In Fed’s Official Scenario

    Over the past year, and certainly in the aftermath of the BOJ’s both perplexing and stunning announcement (as it revealed the central banks’ level of sheer desperation), we have warned (most recently “Negative Rates In The U.S. Are Next: Here’s Why In One Chart”) that next in line for negative rates is the Fed itself, whether Janet Yellen wants it or not. Today, courtesy of Wolf Richter, we find that this is precisely what is already in the small print of the Fed’s future stress test scenarios, and specifically the “severely adverse scenario” where we read that: The severely adverse scenario is...
    On February 2, 2016 / By