Investment Markets Overview — Week Ending 25th July 2014

The cost for the US Treasury to borrow 2-year money has soared by 240% in less than three years, whilst the cost of it borrowing for 10 or 30 years have jumped by 80% and 34% respectively over the past two years, even allowing for the “bear market rally” in the 10 & 30-year yields since the start of 2014. Meanwhile, annualised US GDP has collapsed from the 3.3% rate of Q211 to a pathetic 1.5% rate as of Q114. For those of you trying to “join up the dots,” on what’s going on, which doesn’t include the world’s central banks, the world bank, the IMF and the myriad of other clueless, tax-payer funded entities, who when asked (infrequently if ever) why rates are rising reply by saying because “economic growth is recovering.” Really? One only has to look at the huge debt load bearing down on the United States and elsewhere, essentially the cause of the 2007 GFC, and massively compounded by policy-makers since, hence economic growth is collapsing once more whilst the borrowing costs are rising due to investor’ concerns on being repaid.

25 July 14

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 the rise in borrowing costs, a short trip down memory lane is in order. In 1980 nominal  …..

Charts:
1.Indices Weekly
2.US Housing Prices & Durable Goods V GDP
3.UK Govt Borrowing V UK Debt/GDP
4.Japan GDP Consensus  V the Nikkei Dow
5.Commodity 1 Week Moves

Table:

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

Contrarianism isn’t just a word, it’s a way of life.”

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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