Investment Markets Overview — W/E 9th September 2016

$200BN per month…is the estimated amount of quantitative easing that global central banks are creating in their futile effort to re-stoke economic growth within economies that are already loaded with debt and with the debt acting as a drag-anchor to GDP. The “herd” have been hanging on every word uttered by the central bank elite, still believing that the CBs’ actually know what they are doing. There is ample evidence that the policies just aren’t working and in our own small way the evidence has been shared via these overviews, the latest one being, “Watch the Velocity of Money — Not Their Mouths’,” published last week. There has been a lot of talk by the “talking heads” on the financial media shows in respect of “risk on and risk off,” suggesting that asset-allocators or private investors’ just flick a switch to move between the perceived risk areas such as stocks and commodities, moving across to the perceived safe-havens such as bonds or gold. That used to work…until the CBs’ started to manipulate the markets with obscene amounts of stimulus. The negative correlation between certain asset-classes, in particular between stocks and bonds are breaking down, leaving no place to hide except cash, which is the last thing that the CBs’ wish to see.

Markets ended their two-month snooze with a vengeance on Friday and it was not limited to stocks. Bond prices, commodity indexes and the FX space all witnessed increased volatility on their way to lower prices. “All the same markets label it well.”

9-sept-2016

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 . . .

 After four years of ever lower interest rates and $20,000,000,000,000 of stimulus failed to stoke inflation and economic growth, the ECB in 2014 initiated perhaps one of the riskiest gambles of modern finance  ……

Charts:
1.  Indices Weekly
2. US Manu & Services PMI V US GDP
3. E-Z Retail Sales Vol V E-Z GDP
4. China SOE V  GDP of Major Economies
5. Commodities Weekly

Table:

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

                         “History can be a great lesson, if understood

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

 

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