Corporate Bond Issuance Keeps Humming – Any Investment Implications?

posted in: Credit, Economy, Equities | 0

U.S. corporate bond issuance continues at a healthy pace, with high-yield in particular on course for growth this year after three consecutive yearly decline. In October, corporate debt issuance totaled $140.9 billion, consisting of $118.2 billion in investment-grade and $22.7 … Continued

Tax-Cut Hopes Propelling Small-Caps — To Face Reality Test Ahead

Post-presidential election last November, U.S. small-caps sprung to life, going nearly parabolic in two separate spurts.  President Trump’s promises to cut taxes, prune regulations and increase infrastructure spending helped improve investor sentiment.  Small-caps inherently are domestically focused. The first rally … Continued

Z.1 — 2Q17 Household Assets At New High, Several Other Metrics At Nosebleed Territory

posted in: Credit, Economy, Equities | 0

The financial accounts of the U.S. for 2Q17 was published last Thursday.  Better known as the Z.1 report, the massive quarterly publication contains tons of useful data – thus highly recommended. The seven charts below try to highlight where things … Continued

Unwinding Of Balance Sheet News – Real News Is When Fed Reverses Decision

posted in: Credit, Economy, Equities | 0

It is probably a foregone conclusion that the Fed later today leaves interest rates unchanged, and will announce a plan to gradually shrink its massive portfolio of mortgage and Treasury bonds. The question is, how would the markets react?  The … Continued

Amidst Subdued Capex Scene, Nasdaq 100 Scores Yet Another High Last Fri

posted in: Economy, Equities, Technicals | 0

The tech-heavy Nasdaq 100 index is doing very well so far this year – up 22.4 percent.  This compares with a rise of 10.3 percent for the Dow Industrials, 10.1 percent for the S&P 500 large cap index, and a … Continued

Having Peaked 10 Q’s Ago, Corporate Profits Inch Up In 2Q17 – ’18 S&P 500 Ests Elevated

posted in: Economy, Equities | 0

U.S. corporate profits adjusted for inventory valuation and capital consumption grew 1.3 percent quarter-over-quarter in 2Q17 to a seasonally adjusted annual rate of $2.14 trillion, but growth has been uneven since peaking at $2.23 trillion in 4Q14. Since that peak … Continued

S&P 500’s Rejection At May 2015 Downtrend Line Important Development

The S&P 500 large cap index lost 1.3 percent last week.  Intra-day, off the April 20th high through last Friday’s low, it is now down 2.8 percent.  The index retreated after unsuccessfully trying to break out of a declining trend … Continued

Scenario In Which U.S. M2 Money Velocity Continues Lower

posted in: Credit, Economy | 0

If a chart gets retweeted 86 times, it is safe to say that the topic in question has touched a nerve in Twitter finance. The chart above had that distinction.  The topic it highlighted thus deserves a post.  So here … Continued

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