Chart by Anthony Sanders
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The reason why this makes things uncomfortable for normal economists is that admitting that the problem is two-sided makes it impossible to suggest a solution for dealing with it
If you want a cogent metaphor for the central bank enabled crack-up boom now underway on a global basis, look no further than today’s scheduled chapter 11 filling of met coal supplier Alpha Natural Resources (ANRZ). After becoming a public company in 2005, its market cap soared from practically nothing to $11 billion exactly four years ago. Now it’s back at the…
The simultaneous blood baths in commodities and U.S. stocks continued in July but failed to penetrate the skulls of U.S. stock investors who continue to allow themselves to be brainwashed into believing that they can only make money by owning an overbought market.
The S&P 500 (INDEXSP:.INX) recovered all of its June losses, gaining 2.1% in July including 1.2% last week to close the month at 2103.92, not far off its record closing high of 2,134.72. The index is now up 2.2% (excluding dividends) for the year.
The Dow Jones Industrial Average (INDEXDJX:.DJI) is showing greater recognition of the troubled state of the world. And after last week’s 0.7% gain to 17,689.86, it is down -0.7% year-to-date.
The Nasdaq Composite Index (INDEXNASDAQ:.IXIC), powered by stocks such as Amazon.com Inc. (NASDAQ: AMZN), Facebook Inc. (NASDAQ:FB), Netflix, Inc. (NASDAQ:NFLX) and other biotech and social media names, is outpacing the other indices with a year-to-date gain of +7.6% after adding 0.8% last week to close at 5128.28.
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The rot is extremely broad.
Summary: There are several breadth and sentiment indicators that suggest the indices have reached, or are at near, a one month low. But more importantly, for the first time in awhile it is possible to see an endgame to the sideways trading range that h…
I have a dream. Well, I had a dream, but maybe it’s never coming true, so I’ll revel in my real dream.
In a tiny subsection of the analytical world, analysis is becoming more pointed and poignant.
So many myths were busted in today’s Employment Cost Index (ECI) report from the Labor Department, which should put the kibosh on wage inflation claims until…the next Employment Cost report.
Claims that U.S. wage inflation is finally taking off have moved from the ridiculous to whatever comes afterwards – and that may mean “conflicted.”
The quarterly increase in US wages was just 0.2% according to the latest release of the Employment Cost Index. In fact, it is the lowest on record. The ECI tracks worker compensation over time, so it has some advantages over competing measures of wage growth (which are also lousy). Of course, with 93.6 million […]