Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Inflation Returns Whilst Stocks Deflate Towards Bear Market Lows

Stock-Markets / Financial Markets 2009 Feb 21, 2009 - 08:54 AM GMT

By: Anthony_Cherniawski

Stock-Markets Best Financial Markets Analysis ArticleThe Consumer Price Index still reveals inflation... The cost of living in the U.S. rose in January for the first time in six months as gasoline stopped sliding and retailers tried to push through start-of-year increases even as sales slumped.


The consumer price index rose 0.3 percent, as forecast, after dropping 0.8 percent in December, Labor Department figures showed today in Washington. Excluding food and fuel, the so- called core rate climbed 0.2 percent, more than anticipated, reflecting gains in autos, clothing, and medical care.

…but businesses see even more.

The Producer Price Index (PPI) was released yesterday. In it businesses saw their costs go up .8% last month. That means profit margins are being squeezed, since businesses are having a hard time passing along price increases. The PPI measures wholesale costs for unfinished goods.

Sen. Dodd says that banks may be nationalized.

Senate Banking Committee Chairman Christopher Dodd said banks may have to be nationalized for “a short time” to help lenders such as Citigroup Inc. and Bank of America Corp. survive the worst economic slump in 75 years. “I don't welcome that at all, but I could see how it's possible it may happen. I'm concerned that we may end up having to do that, at least for a short time.” The camel's nose is in the tent again.

Will the November low hold?

-- The S&P 500 is less than 30 points from its November low. Dow Theory Guru Richard Russell wrote in his newsletter two days ago that a close in the Dow Jones Industrials below 7552 reconfirms the bear market. It closed yesterday at 7465.95. The Primary Trend is now reconfirmed as bearish, according to Dow Theory.

After the Dow held, closing at 7,556, Russell wrote grudgingly: "If the Fed was ever motivated to manipulate, this would be the perfect time ... I continue to believe the path of least resistance is down. Another day passes with the bear held at bay. "Question -- Do I think manipulation is going on? As far as the Fed is concerned, this is economic war. 'All's fair in love and war.'"

 

Treasuries are in a tug-of-war.

-- Treasuries rose Friday, pushing yields lower for the first day in three as investors feared government efforts to rescue the financial system may fall short and renewed their appetite for the relative safety of U.S. government debt. Concerns about the deepening global recession and the speculation that a major U.S. bank may be nationalized pushed money back into government bonds.

 

 

 

 

Gold tops $1,000 due to fears of stimulus and inflation.

( Bloomberg ) -- Gold rose to more than $1,000 an ounce in New York for the first time in almost a year as investors, spooked by plunging stocks and a deepening recession, sought to protect their wealth. “One camp of investors is buying gold because of fear the fiscal stimulus packages are insufficient to bring the economy out of recession,” said Peter Fertig , owner of Quantitative Commodity Research Ltd. in Hainburg, Germany. “The other camp fears the stimulus packages will lead to inflation.”

 

 

 

The Nikkei slumps even more.

Japanese stocks slumped, sending the Topix index to its lowest close in a quarter century, as Bridgestone Corp.'s forecast rekindled concern the slump in corporate earnings will deepen. The Nikkei has slumped 16 percent this year as government and central bank measures to revive growth failed to quell concerns about the recession and eroding company earnings. Gross domestic product shrank an annualized 12.7 percent last quarter, the sharpest since the 1974 oil crisis.

 

 

 

 

Is the Shanghai Index an accident waiting to happen?

-- China's stocks surged 24% this year, fuelling concerns that companies may be using borrowed money to speculate in their own stocks.

As much as 660 billion yuan of new lending may have been converted by companies into term deposits or used to buy equities, Li Huiyong , Shanghai-based analyst at Shenyin Wanguo, said in a phone interview this week. “The reason stocks have rallied in China is because of money supply and loans have grown,” Faber said. “This money hadn't gone into production but into the stock market.”

 

 

Strong Dollar driving down commodity prices,

-- Sugar fell, heading for the biggest weekly decline since December, as a deepening recession erodes demand for commodities and investors seek havens in gold and the dollar . Orange juice also declined.

“People are selling pretty much everything today except gold,” said Jack Scoville , a vice president at Price Futures Group in Chicago. “Sugar really can't escape that. Crude oil is down pretty hard, the dollar's pretty strong and people are in fear of the entire world economic system.”

 

 

Who are these people, anyway?

In his speech , Obama said his plan "will not help speculators who took risky bets on a rising market and bought homes not to live in but to sell. And it will not reward folks who bought homes they knew from the beginning they would never be able to afford."

It should be fairly easy to identify speculators who bought homes to rent or flip. But how do you prove someone bought a home they knew they couldn't afford? Do people who refinanced several times to pull out equity also qualify?

 

 

My stats don't agree with the EIA.

The Energy Information Administration reports that, “For the third week in a row, the national average price for regular gasoline increased. The average price rose 3.8 cents to 196.4 cents per gallon. Over the past three weeks, the national average price has increased 12.6 cents, but remains 107.8 cents below the price a year ago and 215 cents below the all-time high set on July 7, 2008.” Apparently their data doesn't agree with ours.

 

 

 

 

A surplus of Natural gas in storage keeps prices down.

The Energy Information Agency's Natural Gas Weekly Update reports, “ Natural gas spot prices continue to show considerable weakness, decreasing at all market locations in the Lower 48 States, since Wednesday, February 11. Easing heating demand due to moderating temperatures and declining crude oil prices likely contributed to price declines posted since Wednesday, February 11. However, pricing patterns in the Lower 48 States during the current heating season suggest that natural gas markets are sufficiently supplied to meet consumer demand and have considerable slack at the margin, as prices appear somewhat less responsive to changes in space heating demand compared with recent heating seasons. ”

 

 

Rick Santelli rants about the mortgage bailout bill!

I don't know how long the video will stay on the net, but Rick Santelli's rant on CNBC really hit a nerve with a lot of folks. This is a must see. We may see a Chicago Tea Party this summer as a protest against all the antics of the government in an attempt to look like they are doing something to solve the problem when they are creating an even larger monster.

New foreclosure defense: “Prove I owe you.” Homeowners demand lenders produce original documents — some can't. This is the latest stall to buy time when facing foreclosure. In the land of securitized mortgages, the original paperwork is often lost or destroyed. This makes it more difficult for mortgage holders to foreclose. Ultimately, it may only be a delay, since judges will accept copies of the documents which are often stored in electronic files.

We're on the air every Friday.

Tim Wood, John Grant and I are back in our weekly session on the markets. The market has been a real roller coaster ride this week. You will be able to access the interview by clicking here .

New IPTV program going strong.

This week's show on www.yorba.tv is packed with information about the direction of the markets. I'm on every Tuesday at 4:00 pm EDT . You can find the archives of my latest programs by clicking here .

Please make an appointment to discuss our investment strategies by calling Claire or Tony at (517) 699-1554, ext 10 or 11. Or e-mail us at tpi@thepracticalinvestor.com .

Anthony M. Cherniawski,
President and CIO
http://www.thepracticalinvestor.com

As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals

Disclaimer: The content in this article is written for educational and informational purposes only.  There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.

Anthony M. Cherniawski Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in