It shows you that we are past the viscous subprime crisis, when that shark chewed through the balance sheets of a number of banks and financial institutions, in some cases devouring them whole.
November 6th, 2009 | Chris Mayer | 3 comments | ContinuedMarket
Commentary on global share markets by your Daily Reckoning editors in Melbourne, Australia. Still haven’t subscribed to the Daily Reckoning? What are you waiting for… sign up here, it’s free!
A chronological listing of articles is below.
Market Feels So Weak Because it IS So Weak
The stock market rallied throughout most of yesterday’s trading session, then stumbled into the close. This pattern has become unnervingly familiar of late.
November 6th, 2009 | Eric J. Fry | 1 comment | Continued
Historically, the Only Reserve a Central Bank Can Trust is Gold
Imagine what would have happened if pharaoh had stocked up on radicchio instead of grain? Those 7 lean years would have been a lot leaner than they were.
November 6th, 2009 | Bill Bonner | 3 comments | Continued
More Money in Cash Right Now Than Equity in U.S. Companies
Now, there is a very good reason investors are reducing their allocation to stocks. As we’ve said before, we think the equity premium – what people are willing to pay for stocks – is regressing to the mean. It was so high for so long because corporate cash flows in the second half of the last century benefitted so much from low interest rates and globalisation.
November 6th, 2009 | Dan Denning | 12 comments | Continued
Higher Oil Prices, the New Normal
Oil prices have bounced more than 150 percent off their December 2008 lows, despite the fact that inventory levels remain at historically high levels.
November 5th, 2009 | Evan Smith | 1 comment | Continued
Price of Gold Communicates U.S. Monetary and Fiscal Policy is Lousy
It’s also possible that the Fed thinks a weak dollar will reduce America’s trade deficit, boost its export competitiveness, and lead to higher employment. We think this is a pipe dream. And we’re not talking about a lead pipe. We’re talking William Blake-style opium.
November 5th, 2009 | Dan Denning | 2 comments | Continued
Tesco is a Buy
Tesco designs, makes, sells, rents and services top drives. A top drive is a motor that sits on top of rig and spins the drill. I don’t want to get too geeked up in the technical aspects of this…
November 4th, 2009 | Chris Mayer | 1 comment | Continued
The Growing Pile of Cash On Corporate Balance Sheets
“Cash is the financial equivalent of a big, soft pillow,” Chris continues. “It helps you sleep better at night. After the credit crisis turned small balance sheet leaks into lethal holes…
November 4th, 2009 | Eric J. Fry | 0 comments | Continued
India Beats China to Walk Away With 200 Tonnes of IMF Gold
India’s central bank is now the proud owner of 557 tonnes of gold. That gives it the tenth largest gold holdings among central banks. But it probably isn’t finished. Gold makes up just six percent of India’s foreign exchange reserves. There’s plenty of room for that to grow.
But don’t forget China. China has $2.3 trillion in foreign exchange reserves…
November 4th, 2009 | Dan Denning | 5 comments | Continued
Interest Rates and Inflation
And that’s the point. It is all money in the bank. There is, according to the press, a difference of opinion between Treasury and the Reserve Bank over interest rates and their proper direction.
November 3rd, 2009 | Dr. Steven Kates | 59 comments | Continued