2012 September

A Closer Look: Market Cap

The S&P 500 Cap-Weighted Index has performed markedly through three quarters, despite a recession-esque economic environment. The index stands close to 52-week highs and currently sits atop support at the 1430 level. It sits above both moving averages with both trending higher. While the mood is somber, the charts look good, but proceed with caution. .. read more

On September 30th, 2012, posted in: Weekly Update by

Brother, Can You Spare A Euro?

By Brian Cronin: I am old enough to remember the horrendous conflict in the Congo in the 1960s. The players: Patrice Lumumba, Joseph Kasavubu, Dag Hammarskjold and Moise Tschombe of the breakaway province of Katanga are all still clear memories. What is also clear, unfortunately, is the question asked by a particularly insensitive British TV .. read more

On September 30th, 2012, posted in: Currencies, Economy by Tags: , ,

How Much Of The Future Can We Borrow For Today?

Ben Bernanke wants you to borrow and spend today. He also wants you to stop buying safe investments like Treasuries, CDs and anything else with a guarantee attached. He wants you to buy corporate bonds, junk bonds and stocks. He really, really wants you to buy a house. What he doesn’t want you to do .. read more

Tactical Update

The Fed has indicated the willingness to buy securities from savers and investors until we get job growth.  But what does this really mean?  Can the Fed induce hiring from further quantitative easing? Bernanke to investors of capital: “take risks today, lend money to entrepreneurs so they can hire.  Act now, because we are buying .. read more

Einstein, Bernanke and Shampoo

Mandates are tricky enough when it comes to interpretation of how to best and most efficiently achieve them. This is especially true when the act of fostering a mandate or moving a system toward the desired outcome is disruptive. The evaluation process of the mandate and the policies meant to push toward it inevitably descends .. read more

The Joyless Street

By Brian Cronin In striking a blow for democracy, it looks like the preliminary decision of the German Constitutional Court has had an effect on other nations signing on for the permanent bailout fund, the European Stability Mechanism. You will recall the court said that any change to the upper limit of Germany’s commitment (€190 .. read more

Fear vs Greed: Greed Is Winning

Here in South Florida we have a saying. If you don’t like the weather, just wait ten minutes – it will change. During rainy season when the weather person says there is a 50% chance of rain, that means it will rain on half the city for half the day. Like the weather in South .. read more

Secular Trends: Monetary and Fiscal Policy

We are often very vocal about our concerns regarding the poor policies in this country.  Here is a tidy little opinion piece from the Fellows at Stanford University’s Hoover Institution. It is a good summary of the existing headwinds coming out of our political class. WSJ.com – Opinion: The Magnitude of the Mess We’re In .. read more