200907.31
1
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Dollar Down, Gold Up

Today’s GDP report didn’t have much of an impact on the stock market, but there were significant effects in other markets. The dollar fell, reinforcing the downtrend and causing a short term rally to fail right at the 50 day MA: Another big mover was the long term Treasury market which moved up in price…

200907.30
2
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Bernanke’s Exit Strategy Will Fail

John Tamny’s article last week at Real Clear Markets explains why Bernanke’s exit strategy won’t work: In his Journal piece, Bernanke re-affirmed his Phillips Curve bona fides with his suggestion that once “recovery takes hold”, there could be “an inflation problem down the road.” To restrain future inflation, the Bernanke Fed “will need to tighten…

200907.29
2
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Market Research

Alhambra Investments provides free unbiased market research for subscribers and browsers alike. If you’d like to learn more about the markets and the economy, explore alternative assets to invest in, or get an in-depth look at our valuable market commentary and research, click on the links below. Market Commentary: We provide commentary on the global markets and various sectors, as…

200907.28
3
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Blaming the Messenger

Commodity speculation is in the news again. The Obama version of the CFTC is apparently about to issue a report blaming the volatility of oil prices on “index speculators” (via Market Watch): Speculators’ index trading is “creating price disruptions for producers and consumers,” said Sen. Carl Levin, D-Mich., late last month after the release of…

200907.27
0
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Analysts Raising Estimates

In my recent market update, I said: I don’t know (and neither does anyone else) how much higher the market can carry, but I suspect it will be quite a bit higher than most expect. Earnings estimates are probably still too low and market sentiment is still too negative. Critics have complained that cost cutting is the source…

200907.26
4
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The Grand Illusion

Stock markets are rising, economic statistics are improving and economists are rushing to proclaim the end of a recession that, compared to recessions past, is quite long in the tooth. While some quibble with the official dating of the recession to the fourth quarter of 2007, if one takes that as the starting point, the…