April 08 Non-Manufacturing ISM Report – It Went Up? - May 6, 2008 10:15

The Non-Manufacturing ISM report on business was released to day with a headline figure of 52% for the Non-Manufacturing Index (NMI), indicating that conditions had returned to expansion after a full Quarter of contraction. However the devil is in the details and a look at the components that make up the headline number shows a […]

GDP boosts stocks, dollar, lowers oil - May 2, 2008 9:20

Analysts, economists, investors, and Americans in general were surprised at Wednesday’s gross domestic product estimate that showed growth of .6 percent for the US economy during the first quarter of 2008. This was slightly better than the general consensus, and surprised some analysts who believed the economy might have contracted, indicating possible recession, during the […]

The Fed says Mission Accomplished - May 1, 2008 12:10

As we know the Federal Reserve cut rates by 0.25% on Wednesday to bring the Fed Fund rates down to 2% with the discount rate also cut 0.25% to 2.25%. Of more interest though was the accompanying statement, especially when compared to the release made in March after the 0.75% cut.

Dollar fighting back against Euro - April 30, 2008 9:12

The Euro hung around $1.30 in value for much of the early to mid part of 2007. In the last few months of the year, it began an impressive surge that paused briefly in early 2008 at around $1.48. Analysts began to wonder if the Euro’s strength relative to world currencies was finally reaching a […]

HBOS speaks with forked tongue - April 28, 2008 23:59

A month ago HBOS was screaming about unfounded rumours as to the state of its capital. It went crying to the FSA as its share price collapsed from just over 700p to just under 400p asking that the “rogue shorter” be hunted down and hung by the neck until severely punished. Talk circulated that it […]

China, Gold and The Coming Flood of Wealth - April 28, 2008 23:57

The Chinese government has set its sites on an average of 10% growth per annum and is achieving that because it has the power to ensure that this happens. The full, synthesized Chinese economy is under the firm control of the government.

More positive tech earnings drive equities - April 25, 2008 9:55

Several more US tech stocks helped strengthen US equities during Wednesday and Thursday (April 24) trade. Following in the footsteps of impressive earnings from companies like IBM, AT&T, and Yahoo, Apple and Microsoft helped lead another new earnings push in the technology sector.

Starve the rich to feed the poor, how Japan may cause the failure of current Federal Reserve policy - April 24, 2008 10:59

Having written 2 in-depth articles about the rationale behind the Federal Reserve and US Govt plans to bail out the financial system some readers of the last couple of Occasional Letters may well have wondered if I was about to change my outlook. This article should put paid to any such thoughts.

Tech stocks buoy US equities - April 23, 2008 12:48

Many people have been amazed at the resilience of US equities markets over the last several months, especially considering the ongoing bad news in credit and real estate. Even with recession talks and consistently bad earnings for the fourth quarter and early into 2008, the Dow remains about 1,000 points above its low late last […]