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Another Buying Opportunity...

Takeaway: Own Long Bonds, Gold and Platinum? Get long #GrowthSlowing.

There have been plenty “buying opportunities” (why is it that they never call them that in the Long Bond or Gold?) this year. Gold was one of them yesterday as we tapped the low-end of my immediate-term risk range = $1319-1365.

 

Anything that’s not hawkish from Janet should be bearish for Bond Yields; bullish for Gold and Platinum. (Note: Gold and Platinum are up 25% and 22% year-to-date respectively.)

 

 

Editor's Note: The snippet above is from a note written by Hedgeye CEO Keith McCullough and sent to subscribers this morning. Click here to learn more. 

 

Want more? Watch Hedgeye CEO Keith McCullough in the video below explain why investors should be long Gold.

 


Daily Market Data Dump: Thursday

Takeaway: A closer look at global macro market developments.

Editor's Note: Below are complimentary charts highlighting global equity market developments, S&P 500 sector performance, volume on U.S. stock exchanges, rates and bond spreads, key currency crosses, and commodities. It's on the house. For more information on how Hedgeye can help you better understand the markets and economy (and stay ahead of consensus) check out our array of investing products

 

CLICK TO ENLARGE

 

Daily Market Data Dump: Thursday - equity markets 8 25

 

Daily Market Data Dump: Thursday - sector performance 8 25

 

Daily Market Data Dump: Thursday - volume 8 25

 

Daily Market Data Dump: Thursday - rates and spreads 8 25

 

Daily Market Data Dump: Thursday - currencies 8 25

 

Daily Market Data Dump: Thursday - commodities 8 25


CHART OF THE DAY | Housing: Return of the Jedi?

Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more. 

 

"... Notwithstanding the noise (Old Wall’s Media trumpeted New Home Sales like the Return of The Jedi, and barely mentioned #GrowthSlowing in Existing ones) I have a few contextual points to make about US Housing:

 

A) Existing Home Sales make up 90% of the US Housing market (vs. New Homes at 10%)

B) A -1.6% year-over-year decline is the slowest rate of change in 23 months"

 

 

CHART OF THE DAY | Housing: Return of the Jedi? - 08.25.16 chart


Early Look

daily macro intelligence

Relied upon by big institutional and individual investors across the world, this granular morning newsletter distills the latest and most vital market developments and insures that you are always in the know.


Cartoon of the Day: Freezing?

Cartoon of the Day: Freezing? - OPEC cartoon 08.24.2016

 

Oil prices popped yesterday on rumors that Iran might support an OPEC oil production freeze. "In our view it is still too soon for any change in OPEC production policy," Hedgeye Potomac Senior Energy analyst Joe McMonigle wrote yesterday. Shortly thereafter, a spokesman for the Iranian Oil ministry said the country hadn't even decided whether to attend OPEC talks next month. Oil prices quickly faded and are down almost -3% today. 


Japan: A Case Study In The Folly Of Central Planning & Dogmatic Economic Thinking

Takeaway: As the BOJ takes extraordinary measures to save its flagging economy, macro markets continue to confound conventional economics.

Japan: A Case Study In The Folly Of Central Planning & Dogmatic Economic Thinking - Japan cartoon 05.02.2016

 

Since Japan is the playground of central planners and economic orthodoxy, here's some of the more interesting recent developments out of Japan that should give pause to any honest economist (oxymoron?) or investor.

 

"Japanese companies are expected to issue 3.3 trillion yen ($32.9 billion) worth of bonds during the three months ending in September, double the amount from the year-earlier quarter, as businesses capture demand from yield-hungry investors to finance growth spending," Nikkei reports. 

 

Clearly, Japanese companies are taking advantage of the country's interest rates hanging out near record lows. Take a look at Japan's steadily pancaking yield curve. 

Got #GrowthSlowing?

 

Japan: A Case Study In The Folly Of Central Planning & Dogmatic Economic Thinking - japan jgb

The Failure of Central Planning...

 

A survey of Japanese companies conducted after Prime Minister Shinzo Abe announced the 13.5 trillion yen fiscal stimulus package reveals unsurprisingly underwhelming expectations:

 

"Less than 5 percent of companies believe the steps will boost the economy near-term or raise its growth potential, according to the Reuters Corporate Survey, conducted August 1-16... Corporate Japan was also cautious about fresh monetary stimulus, with over 60 percent saying the BOJ should not ease further or should even start to wind down its massive stimulus."

 

Interestingly, in the open-ended portion of the survey, one general machinery firm wrote: "Helicopter money must be avoided." Clearly, Japanese companies aren't as sanguine as the hopes and dreams put forth by the country's central planners.

 

Macro markets have already sniffed out the folly of central planning. Pick your indicator...

The NIKKEI Crash Continues...

 

Japan: A Case Study In The Folly Of Central Planning & Dogmatic Economic Thinking - nikkei 8 24

Or Yen strength...

(which according to economic orthodoxy should weaken with more stimulus)

 

Japan: A Case Study In The Folly Of Central Planning & Dogmatic Economic Thinking - yen 8 24

 

How this ends is anyone's guess but one thing is clear, the Japanese people aren't happy with all of this meddling. And yet, the cries for more stimulus keep flowing. 

More to come.


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