Peril In The Markets? Part II

I have included two charts of the Ten-Year Treasury yields below – one daily and one monthly.  The monthly is provided for a longer-term perspective. I would like to address the daily chart.  It seems odd that in an environment in which inflation is (purportedly) a growing concern the economy is supposedly recovering faster than …

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Peril In The Markets? Part I

The next few posts will contain some of my thoughts on the markets from a Technical Analysis perspective.   Typically I don’t comment about my observations from a technical perspective.  However, I believe we are at a very critical juncture here in the markets.   I am not aware of anyone discussing imminent peril in the markets right now, …

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Political Ideologies And Economics

I’ve found it interesting that economic analysis is being categorized as coming from different political sources.  For instance, it is often said that Ben Bernanke was appointed by a Republican, Paul Krugman is a “liberal economist,” etc. This type of classification was also seen in President Obama’s speech on Wednesday, when he said “…an idea …

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An Interesting Chart On Job Losses, Revisited

Here is an updated chart from chartoftheday.com that I have shown and discussed previously, in my July 7 post: http://www.chartoftheday.com/20090904.htm?T There are other charts similar to this, from other sources…however, I find this chart particularly interesting as it incorporates the long-term averages of two other periods.  As I wrote in my July 7 post: “As …

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Homeless Children

I ran across this story about homeless children in the New York Times: http://www.nytimes.com/2009/09/06/education/06homeless.html As I discussed in my September 3 post, I think it is important to have stories and statistics concerning poverty and misfortune published on a more frequent basis.  While they are certainly disheartening, it is far better to have awareness of the trends and …

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Is Deflation A Benefit?

Lately I have seen a few articles that have openly stated that deflation would be a “positive” for individuals.  There are various reasons given for this conclusion. One of the reasons that has been given is that deflation would lower the price of goods, and thereby increase purchasing power. My thought on the matter is …

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Gold And Implications

The strong price action of gold lately has been interesting. As seen in the two-year daily price chart below, the $1000 level has been a pivotal area: Chart Courtesy of StockCharts.com For a variety of reasons I am closely watching whether this $1000 price level will be surpassed.  I am under the impression, due to …

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Poverty And The Wealth Disparity

I find it interesting that we constantly see stories concerning the “highest paid” and wealthiest people of society and how much money they are making.  However, when it comes to the other end of the spectrum, how many stories and statistics do we see about such things as those living in poverty, the wealth disparity, …

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P/E Ratios and Inflation / Deflation

I recently came across an interesting chart titled “Relationship Of Inflation and Price/Earnings Ratios (1900-2008).”  It is from Crestmont Research and can be found at this link: http://www.crestmontresearch.com/pdfs/Stock%20Inflation%20&%20PE.pdf It shows the effect of inflation and deflation (as defined by the CPI) on the P/E Ratio. I think that it is worth looking at for a variety …

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