Over the last several years, many analysts have argued that QE isn’t inflationary because the money that the Fed has printed has been locked up in reserve balances. I don’t personally share this view, but it’s worth noting that recently … Continued
Even as the Dow looks like it could post back to back 200 point increases, there are signs that equity markets are still structurally quite ill. Aggregate volume in S&P 500 component stocks continues to decline. While summer is always … Continued
Today the S&P 500 was up 1.65%, but considering that the dollar was down 1.26% vs. the Euro, if you were a European investor in the US market, you hardly realized any gains–such is the power of currency. Much like … Continued
Citigroup reported strong earnings this morning as did JP Morgan and Wells Fargo last week. All three banks also reported strong deposit growth as well. Systemically, despite low interest rates, US banks have been growing deposits at an above average … Continued
Reposted here from zerohedge is a stunning chart of cumulative flows to bond and equity funds since 1996. It shows that total fund flows into equity funds are negative over the last 16 years. Considering that US households have saved $5.4T over this … Continued