Investment Markets Overview — W/E 5th August 2016

Stimulus…..”a thing that arouses activity or energy in someone or something; a spur or incentive,” at least that is according to the Oxford Dictionary, and it’s what the world’s central banks’ have been doing for years now, alas with less and less arousal. Fresh on the heals of Japan’s $US273BN stimulus package announced last week, notably its 26th since Japan’s economic implosion commenced in 1990, all of which has failed miserably to stimulate either inflation and/or economic growth, their stated goals, the Bank of England’s MPC, headed by “Charmer Carney,” unveiled near “panic” measures this week despite 8-years of similar stimulus with little effect. After 7-years at 0.5%, the base-rate was cut in half, to 0.25%, with an additional £60BN pm of QE, oops “asset purchase target,” over the next six-months, plus for good measure a £10BN planned purchase of corporate debt and a £100BN loan program for the banks. The now “constant Central Bank intervention,” aside of increasing market volatility and economic over-capacity, have “pulled back the curtain,” on just how impotent they and their policies have become, which is expanded on further towards the end of this overview.

The financial markets had a very interesting and revealing week, particularly US Treasuries, the glue that’s holding the whole global debt load aloft. We have further comment on this and much more below:

5 Aug 16 .

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 . . .

  Aside of ample evidence of “policy failure” following years of monetary stimulus, negative inflation and debt- to-GDP levels exceeding 250% ……

Charts:
1.  Indices Weekly
2. $US Index V US Trade Deficit
3. UK Shop Price Index V UK  Services CPI
4. RBA Cash Rate V  OZ Retail Sales
5. Commodities Weekly

Table:

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

“Impotency in men can be cured by Viagra, allegedly, but what to give Janet?”.

Click Here to view Details of the full version of this Newsletter which includes full text and detailed

 

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