Economic Data Poor, But Markets Trend Higher [View article]
Bubbles can get rather large, and sometimes take a while to pop. I guess that is the investment challenge? Is the secret to trade rather than invest (e.g. buy the dips sell the rips) until it sorts itself out?
A senior official says Cyprus has reached an agreement with the Troika to impose a 20% tax on accounts over €100K at the Bank of Cyprus and a 4% levy on similar accounts at other domestic banks. The same source told Reuters the country would not nationalize pension funds.[View news story]
Nicosia official says Cyprus not in reach of deal with troika, blames IMF | http://bit.ly/Y6QUSp
The latest draft bill in Cyprus scraps a proposed levy on deposits of under €20,000 but doesn't make up for the "lost" revenue by increasing the tax on larger accounts. A vote is due later today. Meanwhile, Gazprom has denied speculation that it offered to bail out Cyprus in return for gas-exploration rights. Trading on the Cyprus Stock Exchange has been suspended for today and tomorrow - not a surprise given the chaos that would probably have ensued. [View news story]
Once the levy is sorted, it will be interesting to see the impact on the wider Cyprus economy and any potential implications thereof.
Quite simply, the market looks overbought to me and needs an excuse to move nearer to fair value. The trend is up, the logic and reason for it remains suspect?
Some sort of thump is needed - Cyprus may not be enough?
Cyprus's parliament is due to convene this afternoon to debate an astonishing eurozone demand that it tax all bank deposits at up to 10% in return for a €10B bailout. While approval is not guaranteed, Cypriots rushed to take as much money as allowed out of ATMs. And although EU Commissioner Olli Rehn ruled out a deposit raid in other eurozone countries, menacingly for savers, eurogroup chief Jeroen Dijsselbloem would not. "We are in a new world," says an economist. Update: The parliamentary debate has been postponed until tomorrow. [View news story]
But they are punishing many other people as well e.g. European retirees / expats. Perhaps they should have stuck to the 100k guarantee and punished the Russian money launderers a bit more?
Cyprus's parliament is due to convene this afternoon to debate an astonishing eurozone demand that it tax all bank deposits at up to 10% in return for a €10B bailout. While approval is not guaranteed, Cypriots rushed to take as much money as allowed out of ATMs. And although EU Commissioner Olli Rehn ruled out a deposit raid in other eurozone countries, menacingly for savers, eurogroup chief Jeroen Dijsselbloem would not. "We are in a new world," says an economist. Update: The parliamentary debate has been postponed until tomorrow. [View news story]
Individual deposits with European banks of up to #100,000 Euro are supposed to be safe and protected by a guarantee scheme. The Cyprus bailout grab will shatter peoples confidence in their European banks and create a further divide between citizens and politicians. Cyprus is small beer but the breaking of the guarantee precedent will have major implications resulting in a lack of credibility of Europe, the Euro and beyond?
Manipulation and dark forces - a sound reason to invest? - it is a matter of opinion but I think not. I need to seek out a more trustworthy asset class?
Fed Vice Chair Janet Yellen surprises no one, calling for the central bank to press on with its asset purchases. It's the usual story - the benefits are obvious, the costs negligible, if any. QE will continue, she says, until there is substantial improvement in the outlook for the labor market. [View news story]
Interesting how mainsream markets have chugged ahead 7-10% for little reason in the last couple of months. The perception is that the market is jacked up on QE. I find it difficult to invest based on non-fundamentals - perhaps time to consider another asset class?
Copper Miners: Crisis An Opportunity? [View article]
Copper In for a Rapid but Temporary Fall: Chartist | http://bit.ly/14VwxMJ
Economic Data Poor, But Markets Trend Higher [View article]
Seasonal Factors To Cause Stock Market Volatility [View article]
So you both might be right in the end?
http://bit.ly/11n0fpX
Weighing The Week Ahead: A Seasonal Soft Patch Coming? [View article]
Weighing The Week Ahead: A Seasonal Soft Patch Coming? [View article]
http://seekingalpha.co...
Seasonal Factors To Cause Stock Market Volatility [View article]
A senior official says Cyprus has reached an agreement with the Troika to impose a 20% tax on accounts over €100K at the Bank of Cyprus and a 4% levy on similar accounts at other domestic banks. The same source told Reuters the country would not nationalize pension funds. [View news story]
Weighing The Week Ahead: Planning For The Unexpected [View article]
Europe probably out of favour for a week or two, meanwhile Emerging Markets continue to lag.
upside / downside / inflation risk, or continued QE and the beat goes on?
US recovery looking good - anything on the horizon to stop the music e.g. budget / further decline in consumer sentiment?
My biggest 'snake in the grass' - the market went to far too fast and a potential correction still looms?
The latest draft bill in Cyprus scraps a proposed levy on deposits of under €20,000 but doesn't make up for the "lost" revenue by increasing the tax on larger accounts. A vote is due later today. Meanwhile, Gazprom has denied speculation that it offered to bail out Cyprus in return for gas-exploration rights. Trading on the Cyprus Stock Exchange has been suspended for today and tomorrow - not a surprise given the chaos that would probably have ensued. [View news story]
Don't Get Too Excited About Cyprus [View article]
Some sort of thump is needed - Cyprus may not be enough?
Cyprus's parliament is due to convene this afternoon to debate an astonishing eurozone demand that it tax all bank deposits at up to 10% in return for a €10B bailout. While approval is not guaranteed, Cypriots rushed to take as much money as allowed out of ATMs. And although EU Commissioner Olli Rehn ruled out a deposit raid in other eurozone countries, menacingly for savers, eurogroup chief Jeroen Dijsselbloem would not. "We are in a new world," says an economist. Update: The parliamentary debate has been postponed until tomorrow. [View news story]
Cyprus's parliament is due to convene this afternoon to debate an astonishing eurozone demand that it tax all bank deposits at up to 10% in return for a €10B bailout. While approval is not guaranteed, Cypriots rushed to take as much money as allowed out of ATMs. And although EU Commissioner Olli Rehn ruled out a deposit raid in other eurozone countries, menacingly for savers, eurogroup chief Jeroen Dijsselbloem would not. "We are in a new world," says an economist. Update: The parliamentary debate has been postponed until tomorrow. [View news story]
Feb. Retail Sales: +1.1% vs. +0.5% expected, +0.2% prior (revised). Ex-auto +1.0% vs +0.6% expected, +0.4% prior (revised). [View news story]
Is This 2011 All Over Again? [View article]
Fed Vice Chair Janet Yellen surprises no one, calling for the central bank to press on with its asset purchases. It's the usual story - the benefits are obvious, the costs negligible, if any. QE will continue, she says, until there is substantial improvement in the outlook for the labor market. [View news story]