What exactly defines crazy town . Its the worshipping of the false god of higher oil. Or even the demigod of slightly higher oil. This bullish stock pandering to the rising stock of oil was a threefold impact on the market that defines crazy town because its so darn positive. Why do the bulls like what do they like about all of us paying more at the pump or having our goods be more expensive because of the cost of energy . First to the crazy town aficionados, higher oil means less stress to the system. We are nowhere near the point where we dont need to worry about oil and Gas Companies going belly up. We need it at 45 a barrel to keep most Companies Alive in this country. Theres some cheaper oil, but its being used up by cash strapped firms going after the lowest hanging fruit in the portfolios. Trouble with Oil Companies can sell futures and lock in, say, 50 bucks a barrel which keeps them around to play on and maybe pay dividends. At this moment were 9 away from that 45 level even a
False god of higher oil. Or even the demigod of slightly higher oil. This bullish stock pandering to the rising stock of oil was a threefold impact on the market that defines crazy town because its so darn positive. Why do the bulls like what do they like about all of us paying more at the pump or having our goods be more expensive because of the cost of energy . First to the crazy town aficionados, higher oil means less stress to the system. We are nowhere near the point where we dont need to worry about oil and Gas Companies going belly up. We need it at 45 a barrel to keep most Companies Alive in this country. Theres some cheaper oil, but its being used up by cash strapped firms going after the lowest hanging fruit in the portfolios. At 45 so far from here the trouble with Oil Companies can sell futures and lock in, say, them around to play on and maybe pay dividends. At this moment were 9 away from that 45 level even after todays big run. Thats pretty darn fun. Anytime we get away
Get smoked thats the lesson in todays market where the dow rallied 150 points. S p broke out of the down trend gaining. 87 . And the nasdaq jumped 1. 03 . As we saw real glimmers of hope that the market might be getting over the post alibaba hangover. We usually get this kind of snap back action when sellers have been relentless in their unloading. And one day it turns out that theyve finished selling. And the endless stock supply theyve been providing and knocking the market down with just dries up overnight. Thats what happened. Remember, i talked about the lockin factor last night. Meaning when hedge funds lock in their gains sell, sell, sell. Near the end of the year because theyre beating the market. One of the big secrets of the Money Management business is the notion of secrecy itself. Meaning the need you have as a broker to keep your clients orders secret. Typically, People Like Us when were watching the tape underneath your picture, we dont know when someone, some large insti
Another company in a deal that could put a smile on investors faces. Welcome. It is 7 00 on monday. It is back to work for the japanese Prime Minister shinzo abe. Big problems for the third economy. Full 1. 6 . A lets go live to tokyo to speak our economist. Where does this leave the debate on tax increases . Works pretty much dead pretty much dead. Raising taxes in the next 12 months would be economic suicide. When you the debt gdp numbers today, a enough damage was done with the last tax increase when you look at gdp numbers today, enough damage was done with the last tax increase. Down, but boj double we havent seen any of the Structural Reforms the Prime Minister needs to implement to make japan more competitive, to increase the growth rate, to unleash the economy. There is a lot of potential, but there is a lot of red tape. There is a lot of deregulatory taken. Hat need to be what happened as a reminder how little has taken place over the last two years. What does it mean for the
Widely respected naysayers. Sell, sell, sell keep a system that stocks are doomed to go lower, perhaps much lower. A pessimistic drumbeat that gets amplified across tv, print and the web. Regardless of where stock are trade or how the economy might actually be doing and its totally out of sync with reality. In fact, sometimes i wonder if many of the professional bears are living in an alternate universe. One where theyve actually been right rather than consistently been wrong and just the 20 months from midnovember 2012 to midjuly of 2014, the s p 500 rallied 50 including dividends and a performance thats downright spectacular. If you simply bet on the market as a whole via the s p 500 index fund. Youve made money hand over fist. No time and inclination . Fine. S p fund. In the past, this bull run might have inspired some euphoria. These days it only seems to inspire more skepticism. Modicum of skepticism is always healthy, but i find the widespread fear and loathing of this market to