For those interested in the complete text of the David Malpass report I mentioned yesterday, you can find it here, along with a lot of other good reading in the section on markets.
Link: Don’t Fret the Inverted Yield Curve.
David is one of the world’s best economists. Following by David Malpass, Cheif Economist, Bear Stearns. Equities weakened on Tuesday and bond yields fell further, pushing longer-term yields below shorter-term yields. We disagree with the view that …
John Rutledge’s experience combines a strong academic background and front-line investment experience. His writing is authoritative and persuasive. If you missed him on CNBC, you can read his explanation here. My readers will find both the argument and the implications for stocks to be familiar. The explanation of the need to understand "why" is especially good.
Link: Inverted Yield Curve.
I did a spot on CNBC Wake Up Call at 6:30 this morning; hope you were still sleeping. The topic was the inverted yield curve. Yesterday, the yield on the ten year Treasury dipped below the yield on the two year, reversing the "normal" relationship …
The problem with the comparisons John makes is that all of his "price/peak earnings" periods are not equal. A valuation approach that completely omits interest rates leaves out the biggest asset allocation comparison faced by both managers and individuals. Here’s the story, then I’ll elaborate.
Link: Hussman: Fed Action Won’t Boost Stocks.
Excerpt from John Hussman’s latest weekly essay: …attention has turned to the prospect that the Fed has finished, or is just about to finish, its tightening cycle. Isn’t that alone a great reason for bullishness here? …If you …
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