Investment Markets Overview – w/e 14 February 2014

The Fed’s new boss, Janet Yellen appeared for her first “dog and pony show,” on Capital Hill, better known as the semi-annual “Humphrey Hawkins” monetary policy testimony in front of the House Financial Services Committee. In what is usually a two-day event, day two was postponed due to inclement weather, Janet told the politicians what they wanted to hear, being ready to continue manipulating the markets and widening “forward guidance” from unemployment targets alone. Meanwhile, on the other side of the pond, Bank of England Governor, Carney, changed his own failed “guidance” by widening the odds from one indicator, unemployment, to 18, suggesting that the spare capacity gap will close in three years, inflation will exceed 2.27% in 2016 and GDP will jump to 3.4% this year! Years of excess credit growth created a mis-allocation of capital and excess capacity which takes years to work off and the Central Bank re-flation attempts by way of QE, LTRO and a whole bunch of other “stimulus” measures, to the tune of $US 20,000,000,000,000, have compounded the excess capacity problem that existed at 2007 but policy-makers are either naive to this or choose to ignore it. 140214_chart 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  . . .

  • Returning to Capital Hill, the threat of a first-ever federal default saw a small group of Republicans in the House of Representatives align with Democrats. . .

Charts:

  1. Indices Weekly
  2. S&P500 Index Inverted vs US Initial Jobless Claims
  3. Euro-zone GDP Q on Q vs Euro-Zone Core CPI Y on Y
  4. OZ Unemployment Rate vs TR/J CRB Commodities Index Inverted
  5. Commodity 1 Week Moves

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

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“In God we Trust, but Policy-makers?

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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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