Blog

Month: January 2015

Is Gold the New High Yield?

  • Markets
  • Charlie Bilello

“Amazingly, people are paying Switzerland to warehouse their money for 10 years…That makes gold a high-yielder, because it yields zero” – Jeff Gundlach Jeff Gundlach is correct. At 0%, Gold is now yielding more than two year government bonds in many countries in Europe and has an equivalent yield to that of Japan. Welcome to […]

Breaking The “V”

  • Markets
  • Charlie Bilello

The V-shaped bottom regime ended today as the Dow Jones Industrial Average broke below its early January low. This break, with no “new all-time high” preceding it, ends a remarkable string of vertical rallies to new highs dating back to the beginning of 2013. I don’t usually write about chart patterns, but this one is particularly important because […]

The Greatest Trick the Stock Market Ever Pulled

What if everything you thought was true about markets was a lie? That is the question everyone should be asking today. It defies logic, but investors (if you can call them that) are now paying over 1% for the privilege of locking their money up in Switzerland government bonds for one year. You read that […]

Is the U.S. really decoupling from the world?

One of the key themes of 2014 was this notion that the U.S. was decoupling from the world. The narrative – Japan may be in recession, Europe in a deflationary collapse, and China slowing – but the U.S. is strong and is an island unto itself. The narrative, though, is not the same as reality. […]

Real Wage Growth and Fed Policy: The True Story

Non-farm payrolls in the U.S. beat expectations (251k vs. 240k consensus) last week and the Unemployment Rate fell to 5.6%, its lowest level since June 2008. This was the 51st consecutive month of job gains, the longest streak in history. Given this backdrop, investors must be expecting the Federal Reserve to raise interest rates sooner […]