With monetary quiver empty, are central banks ready to add arrows?

posted in: Credit, Economy | 0

Two members of the Monetary Policy Committee, the Bank of England’s interest rate-setting committee, voted to raise interest rates by 25 basis points in August, the minutes released yesterday showed.  Market participants were taken by surprise.  They have been conditioned … Continued

If — a big if — these relationships hold, U.S. business capex is set to rise

posted in: Credit, Economy | 0

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

Despite big yawn from bond market, job openings point to continued improvement in non-farm payroll

posted in: Credit, Economy | 0

What is going on in the jobs market the past several months is reviving hopes that better days are ahead. There is a lot we can point to in order to validate how anemic the recovery has been post-Great Recession.  … Continued

U.S. corporates refuse to get tempted by consumer-spending signal

posted in: Credit, Economy | 0

Non-residential fixed investment contributed 0.68 percent to the four-percent growth in U.S. gross domestic product in the second quarter.  A much larger 1.69 percent came from personal consumption expenditures.  Back in 1Q08, non-residential fixed investment peaked at $1.99tn, preceded by … Continued

Odds of continuation — or a lack thereof — of divergence between large- and small-caps

There was an article on MarketWatch.com on Friday entitled “Why lagging small caps might not bring down the S&P 500.”  The title says it all.  The story seeks to justify why prevailing weakness in U.S. small-caps is not a cause … Continued

Financials rally even as 10-2 spread narrows throughout 2014

posted in: Credit, Economy, Equities, Technicals | 0

Depending on how mature an economic cycle is, different sectors, and industries within them, act differently.  Some lead, some lag, yet others are coincident.  Investors gravitate toward sectors such as technology and consumer discretionary when they are more optimistic and … Continued

Divergences abound, small-caps included

Small-cap shares are lagging.  This is no news.  Small-caps have been a topic of discussion on this blog several times before.  They have lagged their large-cap brethren, the S&P 500 Index, since early March.  That was when money started to … Continued

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