Feb. 25 (Bloomberg) — Greece’s debt rating may be cut within a month as it struggles to pare the European Union’s largest budget deficit, driving up borrowing costs and renewing pressure on the euro. We are going to return to a...
Read MoreWe are going to add a new twist to an old argument today. To start off we have included a comparative view of the share price of McDonalds (MCD), base metals miner Rio Tinto (RTP), and the ratio between the share price of Coca...
Read MoreWe are going to take a few liberties with our chart comparisons today- hopefully for the greater good. Our topic has to do with the expected direction of the equity markets over the next few quarters.When we refer to the ‘equity...
Read MoreIn yesterday’s issue we compared the trend for the S&P 500 Index following last year’s March bottom with the initial stages of the bull market recoveries coming out of 1982 and 2003. The argument was that the stock market...
Read MoreFor a change- perhaps a welcome one- we are going to do our best to start off with a very simple and straightforward argument. From the perspective of those long the equity markets in general and the U.S. equity markets in...
Read MoreThe Fed raised the discount rate 1/4% as we were midway through setting up today’s issue. Given that we already had all of our topics and charts ready to go we won’t make any adjustments. The initial reaction by the markets,...
Read MoreLet’s get this out of the way first. Our expectation is that China’s construction boom is going to collapse as massive excess supply meets the reality of tighter credit. Our expectation is that raw materials prices are going to...
Read MoreLast week China surprised the markets by raising bank reserve requirements for the second time. We have argued, however, that the only monetary tightening that one really has to worry about is the last one so the issue is not...
Read MoreWe focused rather intently in yesterday’s issue on the intermarket ramifications of strength and weakness in the ratio between copper prices and the CRB Index. The argument in short was that a very strong ratio goes with Asian...
Read MoreOne of the problems associated with arguing in favor of one economically sensitive sector while making negative comments on another is that, by and large, cyclical is cyclical. If we argue, for example, that copper prices are...
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