Markit PMIs Show Changing Global Economic Trends; With Comments On Gold’s Possible Rebound

The first part of today’s post will be brief but will link you to a great deal of information.

Markit has been out today and yesterday with a vast amount of monthly economic updates.  The U.S. data is not out as of now.  Here is a LINK which gets you to the country and regional [...]


Will Europe Unleash A ‘Money Bomb’? And Other Topics…

Here’s an unconventional reason why Europe won’t throw monetary prudence away in a large way:  because the U.S., I hypothesize, doesn’t want it to do so.

While much too much is hidden in finance today, it appears that we can rely upon the broad concept that Europe’s private and public borrowing and lending sectors have [...]


The Market Rout: The Trouble With Europe

Today’s market collapse is reacting to a continuing stream of bad news, but the capper today was the Eurozone Market PMI (Purchasing Managers Index) which fell below the 50 mark for the first time since July, 2009. Anything below 50 indicates declining activity.

Add to that World Bank President Robert Zoellick’s comment that the world’s major [...]


Wall Street Rejects Operation Twist

The markets didn’t like the Fed’s announcement today. When the FOMC announcement hit the tape at about 2:21 p.m., the market nose-dived. I think they were expecting more, such as a lower FF rate, or some QE, or reducing interest paid on bank reserves. Alas. 

Here is a chart of the S&P 500 today. You [...]


A Historical Look At Dividend Yields and Stock Prices

The chart below is a chart of the dividend yield on the S&P 500 (or a synthetic version of such before the modern version began in 1950.  This courtesy of the excellent site



The above chart is for those many people who won’t buy a Treasury or high-grade corporate bond . . [...]