Is Our Corporate Tax System Irrational? [View article]
Have you read the Supreme Court's decision or do you make legal judgments based on your personal feelings without regard to the law? Your concerns would be eliminated by doing away with the corporate form and limited liability. Even evil corporations are entitled to equal protection of the laws. Congressional bribery in the form political contributions will continue under any scenario. To paraphrase The Bard, the fault lies not in the corporations but in ourselves.
S&P 500 futures (SPY) -1%, Nasdaq 100 (QQQ) -1% following the Nikkei's 7.3% crash overnight. In Europe, the Stoxx 50 (FEZ) -2.2%. Shanghai fell 1.2% as its PMI slipped into contraction territory for the first time in 7 months. Treasurys catch a bid, the 10-year yield off 5 bps to 1.99%, TLT +0.8% premarket. [View news story]
There should be no doubts left that the markets are dependent upon the Fed.
Will It Be Inflation Or Deflation? The Answer May Surprise You [View article]
Jefferson wrote: "We must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude…the bellum omnium in omnia", or the war of all against all, "is [the result] of the abusive state of man. And the fore horse of this frightful team is public debt."
Up as high as $1,413 following Bernanke's (at the time) perceived dovish testimony this morning, gold (GLD -0.9%) reverses along with stocks. Markets make opinions, and now the focus on Bernanke is he's prepping the markets for tapering. The just-released FOMC minutes push down gold even further, now at $1,357/oz. [View news story]
Why do so many investors believe in a summer rally? On average, in the 116 years since the Dow was created, the Dow gained 5.29% from the end of May through its highest close over the next three months. Before you get too excited, Mark Hulbert calculates that every season of the calendar can boast a rally of similar magnitude - 5.23%. [View news story]
There is only one direction for this market. Up. The Fed's experiment has proven that it can ease with impunity and not fuel inflation. Anyone not going all in is plain foolish. It's like their giving money away.
The Last Of The 2008 Doomsday Scenarios Is Fading Away [View article]
I have been skeptical of this market, but have successfully traded and invested in it while questioning the effects of QE and what happens when the bill comes due. The point is, the world is a dangerous place. That is why equities are called risk assets. Do I think the market is overheated with Fed fuel? Yes. I am still in? Yes. Do I think we're out of the woods? No. Solution? Keep some dry powder.
Competing articles on the JPMorgan (JPM) vote: The WSJ reports analysts saying the vote to split the Chairman CEO roles is too close to call, but Marketwatch has analysts saying Dimon is likely to keep both jobs. The vote is set to be tallied at the annual meeting tomorrow. Last year, the break-up proposal received 40% of the votes. [View news story]
I'm just wondering whether he should keep his job as de facto Fed Chair.
Silver (SLV) plunged to its lowest level in nearly 3 years overnight before a bounce brought it to its current price of $21.60, -3.3%. As with gold, silver ETP holdings have dropped to the lowest levels this year, and speculative short positions are on the rise, according to CFTC data. Gold (GLD) took out its April lows earlier - dropping as low as $1,338. A bounce has brought the metal back to $1,351, -1%. [View news story]
Even Barron's is questioning the takedown and pointing to coordinated action by the hedges in the Asian overnight (illiquid) futures markets.
Silver (SLV) plunged to its lowest level in nearly 3 years overnight before a bounce brought it to its current price of $21.60, -3.3%. As with gold, silver ETP holdings have dropped to the lowest levels this year, and speculative short positions are on the rise, according to CFTC data. Gold (GLD) took out its April lows earlier - dropping as low as $1,338. A bounce has brought the metal back to $1,351, -1%. [View news story]
All good comments. Traders in paper PMs are shifting to stronger asset classes because it is not paying to fight the central banks. I have no complaint against traders ( I am one), but I also own some physical which I can always pass on to my children. If you own physical, you should view it as an insurance policy against the deteriorating value of fiat currencies. Physical will trace and retrace like any other money, but to paraphrase Lord Keynes (childless, though he was), in the long run the only real money is gold.
The latest installment of the Senior Loan Officer Opinion Survey, has some observers worried. Citing "increased competition," banks generally reported easing their lending standards on business loans over the last three months, as razor thin margins have created a scramble for C&I business (previous). Concurrently, the amount of business loans extended rose 10% Y/Y to $1.55T, leading some to question whether the combination of more lending and lax underwriting standards might prove hazardous to the system. Competition "creates the temptation to do silly things," M&T vice-chairman Mike Pinto tells FT. [View news story]
Whatever happened to dropping money from helicopters?
There is no precedent for the current market, writes The Fat Pitch. Consider: 1) The S&P (SPY) has been up 56 of 88 trading sessions this year 2) It's up an uncorrected 24% since the post-election low - the longest streak in over 3 decades 3) The Nasdaq (QQQ) is on pace for a 7th straight up month, an occurrence with a 3-in-100 probability. Long term it's bullish, writes Ukarlewitz, as this sort of strength is rarely the end of a trend. Short term? Stay nimble. [View news story]
The last time this was achieved was around 1929, I believe.
Is Our Corporate Tax System Irrational? [View article]
S&P 500 futures (SPY) -1%, Nasdaq 100 (QQQ) -1% following the Nikkei's 7.3% crash overnight. In Europe, the Stoxx 50 (FEZ) -2.2%. Shanghai fell 1.2% as its PMI slipped into contraction territory for the first time in 7 months. Treasurys catch a bid, the 10-year yield off 5 bps to 1.99%, TLT +0.8% premarket. [View news story]
How The Fed Directly Subsidizes Corporate Profits And Why The Game Is Over [View article]
Will It Be Inflation Or Deflation? The Answer May Surprise You [View article]
Up as high as $1,413 following Bernanke's (at the time) perceived dovish testimony this morning, gold (GLD -0.9%) reverses along with stocks. Markets make opinions, and now the focus on Bernanke is he's prepping the markets for tapering. The just-released FOMC minutes push down gold even further, now at $1,357/oz. [View news story]
- B. H. Obama, Esq.
Why do so many investors believe in a summer rally? On average, in the 116 years since the Dow was created, the Dow gained 5.29% from the end of May through its highest close over the next three months. Before you get too excited, Mark Hulbert calculates that every season of the calendar can boast a rally of similar magnitude - 5.23%. [View news story]
The Last Of The 2008 Doomsday Scenarios Is Fading Away [View article]
The Last Of The 2008 Doomsday Scenarios Is Fading Away [View article]
Competing articles on the JPMorgan (JPM) vote: The WSJ reports analysts saying the vote to split the Chairman CEO roles is too close to call, but Marketwatch has analysts saying Dimon is likely to keep both jobs. The vote is set to be tallied at the annual meeting tomorrow. Last year, the break-up proposal received 40% of the votes. [View news story]
Silver (SLV) plunged to its lowest level in nearly 3 years overnight before a bounce brought it to its current price of $21.60, -3.3%. As with gold, silver ETP holdings have dropped to the lowest levels this year, and speculative short positions are on the rise, according to CFTC data. Gold (GLD) took out its April lows earlier - dropping as low as $1,338. A bounce has brought the metal back to $1,351, -1%. [View news story]
Silver (SLV) plunged to its lowest level in nearly 3 years overnight before a bounce brought it to its current price of $21.60, -3.3%. As with gold, silver ETP holdings have dropped to the lowest levels this year, and speculative short positions are on the rise, according to CFTC data. Gold (GLD) took out its April lows earlier - dropping as low as $1,338. A bounce has brought the metal back to $1,351, -1%. [View news story]
The latest installment of the Senior Loan Officer Opinion Survey, has some observers worried. Citing "increased competition," banks generally reported easing their lending standards on business loans over the last three months, as razor thin margins have created a scramble for C&I business (previous). Concurrently, the amount of business loans extended rose 10% Y/Y to $1.55T, leading some to question whether the combination of more lending and lax underwriting standards might prove hazardous to the system. Competition "creates the temptation to do silly things," M&T vice-chairman Mike Pinto tells FT. [View news story]
An Investment Strategy For The Bears [View article]
Apple's Magic Is Broken [View article]
There is no precedent for the current market, writes The Fat Pitch. Consider: 1) The S&P (SPY) has been up 56 of 88 trading sessions this year 2) It's up an uncorrected 24% since the post-election low - the longest streak in over 3 decades 3) The Nasdaq (QQQ) is on pace for a 7th straight up month, an occurrence with a 3-in-100 probability. Long term it's bullish, writes Ukarlewitz, as this sort of strength is rarely the end of a trend. Short term? Stay nimble. [View news story]