Pretty good new jobs numbers (117,000, well above most estimates), unemployment down 0.1%, and no stock market rally. Ugh! This may well portend noticeably lower stock market prices over the next few weeks/months.
Showing posts with label Stock and bonds. Show all posts
Showing posts with label Stock and bonds. Show all posts
Friday, August 5, 2011
Wednesday, July 20, 2011
Lazy Summer Day
At least the markets behaved as if it were a lazy summer day. Corn was down sharply but corn was pretty much the only major item that moved much. Wheat, beans, crude, stocks and bonds all spent the day trying to wake up. Forex response to everything was nothing if not muted. Or maybe it was nothing AND muted.
The elephants in the room that the markets chose not to deal with today were the impending US debt limit expansion or technical default on one hand and the wide-spread European debt crisis on the other. What the worlds stock markets need is an invasion from Mars, one that we know we can defeat. All the countries will find a way to get paid as a result of a global war against a common enemy, the world's bourses will rally happily, OPEC will decide it is time to control the price of crude, which they will do by selling short one billion barrels which will break the backs of all the hedge funds. They in turn will have to put to work all their now-unemployed bright boys inventing ways to defeat Mars -- even if it is a hostile take-over of the Martian Stock Market(s). And everybody will live happily ever after. Don't they always?
The elephants in the room that the markets chose not to deal with today were the impending US debt limit expansion or technical default on one hand and the wide-spread European debt crisis on the other. What the worlds stock markets need is an invasion from Mars, one that we know we can defeat. All the countries will find a way to get paid as a result of a global war against a common enemy, the world's bourses will rally happily, OPEC will decide it is time to control the price of crude, which they will do by selling short one billion barrels which will break the backs of all the hedge funds. They in turn will have to put to work all their now-unemployed bright boys inventing ways to defeat Mars -- even if it is a hostile take-over of the Martian Stock Market(s). And everybody will live happily ever after. Don't they always?
Saturday, June 11, 2011
Stocks and Bonds June 11
After reading oversold on Wednesday, the stock market put in a weak, one day rally Thursday then posted fresh lows on Friday.The door is open for another 500 point decline as a result. Whether that will happen remains to be seen. This decline has been, it seems, based on the lack of economic recovery outside the executive suites of the Fortune 500 companies. It may seem strange that Wall Street could be so very insular as to expect the recovery of the Wall Street banks and increases in the executive's pay at the largest companies means that the economy will prosper, but Wall Street has its own set of delusions, fostered, in part, perhaps, by implicit Federal guarantees.
The bond market has been overbought almost forever, it seems, and still shows no signs of heading down. It will happen someday, just not today. Too bad we couldn't have had a second version of William M.Martin or Paul Volcker at the Federal Reserve rather than that damn fool Reagan appointee we did have. We might not have an economy so thoroughly shattered. In another life, perhaps, prudence will reign over politics.
The bond market has been overbought almost forever, it seems, and still shows no signs of heading down. It will happen someday, just not today. Too bad we couldn't have had a second version of William M.Martin or Paul Volcker at the Federal Reserve rather than that damn fool Reagan appointee we did have. We might not have an economy so thoroughly shattered. In another life, perhaps, prudence will reign over politics.
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