Investment Markets Overview – w/e 8 March 2013

There were some record highs witnessed this week, foremost of course was the new all-time high for the nominal Dow Jones Industrial Average Index. We comment more on this below, as we do in respect of the year to date highs for US Treasury bond yields and in particular the 30 year yield which affects the vast majority of Americans mortgage costs. Of particular interest this week was the latest ramblings of Fed chair Bernanke. After the shock following the release of the minutes of their January FOMC meeting, which included a “hint” that the present round of “QE” might not be as perpetual as first thought, the markets were hit hard. So this week the folk at the Fed are talking about the “possibility” that they might not sell the contents of their exploding balance sheet after all. We could exit without ever selling, by letting it run off, Bernanke was quoted as saying, in respect of the ever expanding US Treasury debt that it holds. To do that it will have to stop buying Treasuries and as the paper on its balance sheet “matures“, it is going to have to collect the principal payment from the Treasury, Just where is the Treasury going to get that kind of money from and just who else will buy the debt sales required were not mentioned.

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Subscribe to the Full Investment Markets Overview Newsletter which contains the following additional commentaries:-  

  • US economic data . . .

  • Euro-Zone   . . .

  • The UK . . .

  • Out East   . . .

  • The $US index  . . .

  • Within the commodities complex  . . .

  • Economic data due next week includes  . . .

  • “President Obama on Friday signed an order that starts putting into effect across-the-board budget cuts known as the ‘sequester’. . . .
     

  • Charts:-
    1. Indices Weekly
    2. US Non-Farm Payrolls vs US GDP Annualised
    3. UK Average House Prices vs UK 10 Year Gilt Yld
    4. China Retail Sales Cumulative Value Y on Y
    5. US 30 Year Bond Yield vs 12th December: Fed announces $US 45bn pm Bond Purchase

 

Table of 15 Indices, 11 columns of detailed information, for accurate analysis


                                         “If it doesn’t smell right, then don’t eat it

 

Click  HERE to view Details of the full version of this Newsletter

which includes full text and detailed Charts for each section

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