Month: June 2013

June
24

Provided by: Jon McGraw

Playing “Telephone” & Housing Bubbles

The Markets It was like watching a game of telephone where one child speaks into another child’s ear and that child speaks into another child’s ear and, by the time the last child repeats the original statement, it has transformed into something completely different. Chairman Ben Bernanke stepped up to the microphone at the press…

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June
23

Provided by: Jon McGraw

Positive Economic Outlook Initiates Retreat From QE Policy

It was the comments at the end of this week’s FOMC meeting that overshadowed the meeting itself.  In summary, Ben Bernanke’s announced a more enunciated plan to end the existing Quantitative Easing program. The Fed’s conclusions are in response to more positive outlooks for the economy and the labor market since the fall. Conditional upon continuing…

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June
19

Provided by: Jon McGraw

FOMC Action – June 18, 2013

The Federal Open Market Committee completed their meeting this morning, and the conclusion was much the same as we’ve come to expect: continued stimulus in the form of $85 billion in bond purchases a month with the same targets (6.5% unemployment assuming no higher than 2.0% inflation). However, their outlook seemed slightly more optimistic on…

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June
17

Provided by: Jon McGraw

US Economy and the Race for Renewable Energy

The Markets Like a host at a dinner party, the International Monetary Fund (IMF) put the performance of the U.S. economy on the table last week to be gnawed over by world markets. When the IMF presented its annual review of the world’s largest economy, it stated that: “Despite some improvements in economic indicators, particularly…

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June
17

Provided by: Jon McGraw

Economic Notes – June 17, 2013

(+) The highest-profile economic release of the week, May retail sales, were a bit higher than expected with a gain of +0.6% versus a forecasted +0.4% (including seasonal adjustments that first lowered April retail sales from +0.5%, to -0.1%, then revised them upward again to +0.2%). ‘Core’ retail sales, which removes the more volatile components…

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June
10

Provided by: Jon McGraw

QE Uncertainty & The “Sport” of Investing

The Markets Like a funhouse mirror, investors’ concerns about whether and when the Federal Reserve will begin to end its quantitative easing program contorted market responses to economic news last week. Unexceptional economic reports were treated as good news and pushed stock markets higher; strong economic reports were treated as bad news and pushed stock…

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June
10

Provided by: Jon McGraw

Economic Notes – June 10, 2013

There was quite a bit of economic data out last week.  Summary: (-) The ISM Manufacturing report came in a bit weaker than expected, falling from April’s 50.7 to 49.0 for May, compared to the 51.0 level anticipated and pushing the measure to its lowest level in three years. Weaker underlying components included forward-looking new…

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June
03

Provided by: Jon McGraw

The Markets The Fed will taper… the Fed will not… the Fed will taper… the Fed will not… Last week, investors and traders obsessed about the Federal Reserve and the possibility it might begin to end its quantitative easing program. The Fed began its first round of quantitative easing during the financial crisis in an…

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June
03

Provided by: Jon McGraw

Economic Notes – June 3, 2013

In a shortened holiday week, only a few memorable economic releases were featured. (-) Consumer spending for April was weaker than expected, falling -0.2% versus an anticipated flat reading and March growth was revised downward a tenth. Sales as gas stations dropped a seasonally-adjusted -9% due to lower prices, which caused the bulk of the…

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