Thursday, May 23, 2013

BRIEFS

It's the blue faces the red again.

Only this time it's about jobs. You recall them. In the last four or so years not too many new ones around. So it's interesting to see which states are relating more new jobs, the red or the blue. And the winner is:  
http://news.investors.com/052313-657271-red-states-beat-blue-states-on-economy-jobs.htm?ref=HPLNews
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China's manufacturing continues it's lukewarm ways. Some analysts blame China for Japan's woes as both EU and Japanese equities take hit on the Chinese report.
http://online.wsj.com/article/SB10001424127887323336104578498902464473978.html
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THURSDAY READS

New Home Prices

Your Credit Score

Monday, May 20, 2013

DEBASING CURRENCIES

If you think debasing currencies isn't closely watched, read the following link from the WSJ.

Often referred to as "beggar thy neighbor," it's something that frequently cause central banks to intervene in the market to protect their goods. Here you have tiny Taiwan active in the market trying to prevent their currency from appreciating too much. 

http://online.wsj.com/article/SB10001424127887324767004578488682893945140.html?mod=ITP_moneyandinvesting_1

MONDAY READS

That Leaving Feeling
http://online.wsj.com/article/SB10001424127887323398204578489261685554102.html?mod=ITP_pageone_1

TBTF
http://www.marketwatch.com/story/too-big-to-fail-is-now-bigger-than-ever-andy-xie-2013-05-19?pagenumber=2

Mistake Or Good Buy
http://finance.fortune.cnn.com/2013/05/19/yahoo-mistake-tumblr/

Global Connections
http://www.itau.com.br/itaubba-pt/analises-economicas/publicacoes/global-connections/developing-euphoria-felix-zulauf

Bernanke Testifies       
http://www.cnbc.com/id/100749333

Read With Care
http://www.learnbonds.com/be-a-smart-investment-news-consumer/

Yield Curve
http://www.bondvigilantes.com/blog/2013/05/17/what-is-the-probability-of-a-u-s-recession-in-the-next-12-months/

Equities For Lunch
http://www.seeitmarket.com/3-reasons-investors-are-eating-us-equities-for-breakfast-13309/

Saturday, May 18, 2013

BRIEFS

We've talked about this sector before, so we won't labor the point. This article lists some of the reasons we would own parts of this sector before not after it rebounds. And it will rebound.

http://www.marketwatch.com/story/4-reasons-why-resources-stocks-are-a-natural-bet-2013-05-16?pagenumber=2
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rle

Threat of Default": US hits debt limit on Saturday, but by using a slew of shuffle maneuvers, shell games, tricks, and devices, the US won't actually run out of money until "after Labor Day," Treasury Secretary Jacob Lew told Congress in a letter. In his previous statement, the US would be "okay until Labor Day." Today, he was more frantic. He begged Congress to get its act together and do something "sooner rather than later" to “remove the threat of default.” In its infinite wisdom, Congress had suspended the debt limit till May 18, rather than dealing with it. The debt, though still over the limit, declined in April and early May; tax extractions were fattened by asset bubbles. But since May 10, the debt has once again been rising.  
                                                                    Testosterone Pit
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One thing nobody seems to focus on is services inflation. It’s slower to turn both up and down. Services inflation got up to 4.7% in June 2008. It dropped below 2% in February 2009 and stayed below until August 2011. We’ve been mostly above since and reached a high of 2.9% in February 2013. The last two months have backed off to 2.6%. This compares to 0.5% for the regular CPI. Since November 2012, services inflation has been stronger than overall inflation. Maybe this is a good thing for an economy that’s 80-90% services and shows demand; but, I don’t really think so for an economy with a coincident index growth rate of 1.4%. If the Fed really want’s 2% inflation, they already have it for most of the economy. Why they focus on core and these other measures doesn’t make much sense.
                                           Daily Speculations


WEEKEND READS

More Confident http://www.futuresmag.com/2013/05/17/americans-most-optimistic-since-2007-as-stocks-sur?ref=hp

One House's Market Outlook http://online.barrons.com/article/SB50001424052748704551504578487054194986208.html?mod=BOL_hps_oe#articleTabs_article%3D0

Quitting QE Risks
http://www.futuresmag.com/2013/05/17/quitting-qe-whats-at-risk?ref=hp

Nervous About The Market?
http://www.usatoday.com/story/money/columnist/waggoner/2013/05/16/investing-at-all-time-highs/2169983/

Claim Not Supported By Facts http://www.thefiscaltimes.com/Articles/2013/05/16/Data-Debunks-IRSs-Explanation-of-Extra-Scrutiny.aspx#page1

EU Running Out Of Oil http://www.energytribune.com/76816/the-world-is-not-running-out-of-oil-but-europe-is#sthash.phQcebbt.dpbs

Central Banks Buying Equities
http://www.financialsense.com/contributors/clif-droke/when-central-banks-buy-stocks

More Deception?
http://news.investors.com/051713-656551-obama-exaggerated-spending-deficit-budget-cuts.htm?ref=HPLNews



Friday, May 17, 2013

JUST REMEMBER

In my younger and more vulnerable years my father gave me some advice that I've been turning over in my mind ever since.

"Whenever you feel like criticizing any one," he told me, "just remember that all the people in the world haven't had the advantages that you've had."
                                                                   Nick Carraway
                                                                   
Now that still another remake of F. Scott Fitzgerald's classic novel, The Great Gatsby, has hit theaters, it's interesting to reexamine some of the themes Fitzgerald covered. The link below discusses a few things not to do, though we might take exception to a couple of their points.

An important word in the above quote is vulnerable. In part this is certainly a story about losing one's vulnerability.  For those who haven't it might make the movie more enjoyable if you read the novel first.  

Though diversification is important, no less an investor than Warren Buffett called it "diworsification." Most fortunes are made through focus, not by spreading oneself too thin. That's part of the risk. It comes with concentration. But so does, for the most part, big reward.

http://www.moneytalksnews.com/2013/05/17/6-ways-to-ruin-your-life-gatsby-style/?utm_source=newsletter&utm_campaign=email-2013-05-17&utm_medium=email

PAIN EXPENSE ANGUISH

Two of America's best known and largest institutions celebrate their 100th anniversary this year, the Internal Revenue Service and the Federal Reserve Bank.

In their time both have done enough damage to make a Stage Five Hurricane seem like a kindergarten party washed ashore.The bureaucrat-bloated, byzantine IRS has become the modern day bully on the block. 

With rules and regulations even they can't understand, the IRS has a long and sordid history of controversy, deceit and lawlessness. The recent uproar over politically-driven audits is just one example of American taxpayer abuse at the hands of a power-mad government agency running amuck. The links below shows several more for those interested.

It's too bad this story didn't hatch a bit later this year since National Bullying Awareness Week is set for November 17 - 23, 2013 with its Theme: "Stand Up! (to bullying)." Maybe then it would get the MSM attention it deserves.

Incompetence not bullying is the Federal Reserve Bank's forte. As one long-time observer once put it: "Many studies, formal and informal, have been made of the record of forecasting by economists, and it has been consistently abysmal."  

The Federal Reserve given all their so-called resources has hardly proved adept at seeing let alone heading off economic trouble at the pass. In fact, truth be told, these people have created far more trouble then they've resolved. Most of it at the pain, expense and anguish of the American consumer.



FRIDAY READS

Importance Of Homework
http://touch.valuewalk.com/valuewalk/#!/entry/avoid-overreacting-to-trending-news-by-knowing-your-stocks,519550efda27f5d9d0c6a76d/2

President's Wealth Revealed
http://www.moneynews.com/newswidget/Obama-Investor-Cautious-Strategy/2013/05/15/id/504724?promo_code=F492-1&utm_source=Test_Newsmax_Feed&utm_medium=nmwidget&utm_campaign=widgetphase1

Shine Gone?
http://www.bloomberg.com/news/2013-05-16/gold-seen-falling-to-1-100-an-ounce-in-a-year-by-credit-suisse.html

One Giant Step Nowhere
http://news.investors.com/business/051613-656433-walmart-highlights-fragile-economic-recovery.htm?ref=HPLNews

Is There A Surprise In Store Here?
http://www.marketwatch.com/story/talk-of-fed-wind-down-grows-louder-2013-05-16

Gas Prices Up
http://www.usatoday.com/story/money/2013/05/16/midwest-great-lakes-regions-driving-national-gas-prices-higher/2166845/