This week’s Greedometer newsletter has been uploaded. Advisor’s have NEVER been more bullish than last week. Hello contrarians! Insiders continued panic selling. And the Greedometers continued to show the most extreme levels of long term and short term stock market risk ever. No bubble here though….
Today’s 2.8% real GDP growth estimate from the BEA is absolutely meaningless. That fact did not stop the stock market from selling-off because of fears the Fed may take the QE3 punch bowl away. As much as I firmly believe the Fed should do exactly that, today’s BEA estimate of GDP was not a reason to expect QE3 to be taken away. (Don’t worry, […] Read the rest of this entry
The latest CPI data was released from the BLS an hour ago. September showed benign inflation at the consumer level. It would appear the Fed’s got a green flag to continue QE until January –according to my inflation estimates. But look at 2014. If the Fed keeps the brick on the gas pedal through April, real-world inflation is likely to reach 4% by next […] Read the rest of this entry
The European Central Bank (ECB) released more information about the bank asset quality test it plans to conduct. Given that previous european bank stress tests were merely deceptive cheerleading exercises, a legitimate job needs to be done to avoid losing credibility (we don’t want a major central bank to lose credibility…). What’s different this time (why take this seriously): The ECB is doing the […] Read the rest of this entry