08-30-2016, 11:23 PM
When the Federal Reserve speaks, the big investors listen, Jim Cramer told his Mad Money viewers Monday. Now that the possibility of not one but two interest rate hikes may be on the table for later this year, the big money managers are springing into action. "The that led us higher in the past are no longer in charge," Cramer explained. Big money managers are moving money into the sectors that prosper from economic growth. Sectors like the banks profit from a growing economy and higher net interest margins. Cramer said a growing economy is also great news for global industrials, such as Eaton (ETN) and Honeywell (HON) and railroads like CSX (CSX) . Other hot sectors will now be paper and chemicals, along with tech stocks like Microsoft (MSFT) and Cisco Systems (CSCO) . Cramer is also bullish on chipmakers including NXP Semiconductor (NXPI) and others that may become the takeover targets.
Jim Cramer's 'Mad Money' Recap: These Are the Sectors to Buy Now - TheStreet
Japanese household spending fell less than expected in July and the jobless rate hit a two-decade low, offering some hope for policy makers battling to pull the world's third-largest economy out of stagnation. But with the economy barely growing and inflation sliding further away from the Bank of Japan's 2 percent target, a majority of economists expect the bank to ease further next month, when it conducts a comprehensive review of the effects of its existing stimulus programme.
Japan household spending falls less than expected, jobless rate hits 21-yr low
Policymakers think new tools might be needed in an era of slower economic growth and a potentially giant and long-lasting trove of assets held by the Fed. And they are convinced the time to vet them is now, while rates look to be heading up. "Central banking is in a brave new world," Atlanta Fed President Dennis Lockhart said in an interview on the sidelines of the conference. At the center of the Fed's discussions is its $4.5 trillion balance sheet, built up by bond-buying sprees to combat the 2007-09 recession but which has been criticized by many lawmakers. While policymakers have maintained the Fed should eventually reduce its bond holdings, Lockhart said some officials were closer to accepting that they needed to learn to live with them.
As Fed nears rate hikes, policymakers plan for 'brave new world'
Typically, the yellow metal and U.S. Treasuries market move in opposition as investors shift from one to the other in search of a safe haven amid changing economic conditions. However, Dennis Gartman, editor & publisher of "The Gartman Letter", highlighted some very unusual activity that's been underway in recent months. "Having been at this for forty years, I always look for anomalies," explained Gartman on CNBC's "Futures Now" on Thursday. "It's very strange to me that, since June, as went gold so went the bond market." To this end, both gold and the U.S. 10-year Treasury note remained nearly unchanged in the last quarter. And, as Gartman pointed out, the absolute prices of both have rallied and fallen in tandem.
Gold and bonds 'don't make any sense', but here's what to do: Gartman
Those are some hefty prices, but Musk said on a call with journalists that starting with Tesla's high-end cars was deliberate. "You know, we get lambasted a lot for making expensive cars. But I just want to again reiterate that was never our goal in and of itself. Our goal was always to make great affordable cars," Musk said during a conference call with journalists on Tuesday. "We just need a few technology iterations and economies of scale to get there, and nothing would make me happier than to be able to build a great electric car that everyone can afford." Musk said Tesla will produce 200 of the new battery packs a week, which is about 10% to 12% of its total production volume. He said it's limited because "the manufacturing complexity is significantly greater than the 90 kWh pack."
Tesla battery upgrade good for electric cars - Business Insider