Global Market Comments for October 29, 20081) The Fed cut rates by 0.50% to 1%, justifying yesterday's monster stock rally. But doesn't 1% sound familiar? Isn't that the rate that Greenspan targeted that planted the seeds of the current crisis? Beware of the unintended consequences!2) On Monday, when the commercial paper market reopened, Treasury bought
Global Market Comments for October 28, 20081) All the recent trends reversed today on imminent Fed and ECB rate cuts. The Dow soared 900, crude and commodities popped, while the dollar and Treasuries sold off. The yen short I strongly recommended yesterday at ??92/$ fell back to ??97/$. The VIX fell back from 80% to
Global Market Comments for October 28, 20081) All the recent trends reversed today on imminent Fed and ECB rate cuts. The Dow soared 900, crude and commodities popped, while the dollar and Treasuries sold off. The yen short I strongly recommended yesterday at ??92/$ fell back to ??97/$. The VIX fell back from 80% to
Global Market Comments for October 27, 20081) Another Asia melt down hit the markets. Hong Kong was down 12% to 11,000. Japan was down 6.4%, hitting a new 24 year low. The euro made it to $1.23. Iceland's stock market is now down 90% from its top. The Great Global Deleverage continues. Futures markets are
Global Market Comments for October 27, 20081) Another Asia melt down hit the markets. Hong Kong was down 12% to 11,000. Japan was down 6.4%, hitting a new 24 year low. The euro made it to $1.23. Iceland's stock market is now down 90% from its top. The Great Global Deleverage continues. Futures markets are
Global Market Comments for October 24, 2008 STRATEGY CALL OF THE DECADE We are building up to a textbook capitulation in global stock markets, and I believe that equities will hit multigenerational valuation lows sometime in the next ten days. The extremely rare limit down move in the S&P Index futures at the opening today,
Global Market Comments for October 24, 2008 STRATEGY CALL OF THE DECADE We are building up to a textbook capitulation in global stock markets, and I believe that equities will hit multigenerational valuation lows sometime in the next ten days. The extremely rare limit down move in the S&P Index futures at the opening today,
Global Market Comments for October 23, 2008 1) The blame game for the financial crisis on capitol hill continued in earnest, with everyone from the SEC's Christopher Cox, to former Fed governor Allan Greenspan pointing fingers. Greenspan was 'shocked' that his own 40 year old models blew up. Sounds like one of Claude Rains? lines
Global Market Comments for October 23, 2008 1) The blame game for the financial crisis on capitol hill continued in earnest, with everyone from the SEC's Christopher Cox, to former Fed governor Allan Greenspan pointing fingers. Greenspan was 'shocked' that his own 40 year old models blew up. Sounds like one of Claude Rains? lines
Global Market Comments for October 22, 2008 1) Today global deflation trumped the continuing decline in LIBOR, knocking the Dow down 700 at one point. There was a five cent move in the euro today down to $1.27 as global funds poured into Treasuries. It turns out that a global recession is great for the