Investment Markets Overview – w/e 8 Nov 2013

The heat is starting to rise for the “Big 3” Central Banks of the US, the UK and the ECB, as the Sovereign bond yields of these regions started to rise once again, after the brief respite provided through September and October. Whilst the media talking heads would have you believe that it’s down to improving economic growth, jobs and incomes, which we dispute (see below) the heat is rising for other reasons. Aside of the ongoing concerns about the three regions ballooning debt load, law-makers and indeed the Central Banks’ themselves are getting increasingly twitchy about the effects on the ongoing “asset purchase targets, better know as QE or stimulus out of fresh air .” The Fed is fast approaching a situation when it will be facing losses on its bond holdings and no longer will be able to pass on any gains to the US Treasury for years to come, whereas the ECB felt obliged to cut its base rate in half this week, to a record low, in to a desperate attempt to weaken the € and recognise, privately, that their LTRO policies have failed in its intent to re-flate, as inflation slumps, GDP remains tepid and liquidity contracts. Meanwhile, the UK’s Central Bank is coming under closer scrutiny in respect of its support for tax-payer guaranteed mortgages as the 10-year Gilt yield, the real mortgage rate, continues to rise.

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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  . . .

  • Some of the recent US “hot stocks,” were doused this week,   . . .
     

  • Charts:-
    1. Indices Weekly
    2. US GDP vs US Personal Incomes vs US Personal Consumption Expenditures
    3. ECB Base Rate vs Euro-Zone Retail Sales Volume
    4. Nikkei Dow 225 vs Japanese Monetary Base Y on Y
    5. Commodity 1 Week Moves

 

  • Table:-

13 Indices, 11 columns of detailed information, for accurate analysis

If the public wants to grab the bag from you, give it to them”     Joe Granville, legendary investor.

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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