Public highway and street construction spending flat last six years Average age of private fixed structures 26-plus in 2013, highest since 1954 U.S. ran up $9tn in cumulative deficit in 2008-2013, with emphasis on consumption We are aware how in … Continued
Six years into recovery, U.S. corporate capX potential yet to turn into reality September saw several macro/company data points in deceleration Latest being m/m order shrinkage in business capX proxy Five-plus years and counting. Still a no-show. The chart below … Continued
2007/2008 crisis fueled by excessive use of leverage Not much learned from that experience as U.S. debt continues to balloon Consistently falling trading volume can create problem even as primary market has gotten bigger As the chart below shows, we … Continued
Revised 2Q14 U.S. GDP estimates revived hopes of capX revival U.S. corporates have continued to disappoint as relates to adding capital NFIB capX plans in September show why that is not likely to change anytime soon When the preliminary estimates … Continued
U.S. dollar suffered six-year downtrend before embarking on multi-year consolidation phase Recent pullback in the wake of parabolic move, amid grossly overbought technicals Too soon to say if breakout is reversal or continuation of prior trend If the US dollar … Continued
Expectations of higher US interest rates and stronger economy acting as tailwind behind resurgent $ Sentiment too bullish, reflected in non-commercials’ near-record net longs in US $ futures Safe bet probably is to wait to take the other side of … Continued
Another year, another record issuance! Probably. US corporate bond issuance is on course for another record year. August-to-date, as per the Securities Industry and Financial Markets Association, corporations have issued $939.2bn, of which investment-grade is $738.2bn and high-yield $201.1bn. In … Continued
The revised 2Q14 GDP numbers last week have rekindled hopes of a corporate capital spending revival in the U.S. It was the second estimate (preliminary), so there is one more revision to go. Nevertheless, several inputs related to corporate spending … Continued
The Congressional Budget Office yesterday put out some interesting forecasts for the current fiscal year. Corporate tax revenues will come in at $315bn, versus prior forecast of $351bn, it said, and that U.S. real GDP growth will be 1.5 percent, … Continued
At hedgopia, we try to be as objective as possible. Currently, this blogger is bearish insofar as U.S. equities and economy are concerned. Nevertheless, as someone famously said, “When the facts change, I change my mind. What would you do, … Continued