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Had the strategist dressed up his trade in more acceptable lingo to the bigwigs in the markets, using terms such as ‘momentum’ and ‘flow’, such as dissecting the active hedge fund buying in a certain stock or sector, noting the build-up of shorts via options and stock out on loan elsewhere in an underperforming stock, then no-one would have blinked an eye.
But Barrette’s situation defies quick and easy description. It’s true that she can’t keep her current policy—and that most policies available to her for next year have higher premiums. But those plans also offer real coverage, and her current plan does not. Some people might resent government effectively prohibiting her current plan. Barrette doesn’t appear to be one of them.
There are two reasons moderate inflation is actually a good thing for modern economies — one involving demand, one involving supply.
Currently the Fed is operating under something called Evan’s Rule, which says that that the Fed will not think about rate hikes until either unemployment falls to 6.5% or inflation rises to 2.5%. Hatzius believes that the Fed will lower the unemployment threshold from 6.5% to 6.0%. This constitutes easing in that it implies low rates for a longer time.
Europe’s economic recovery will continue into the second half of the year, though at a subdued pace, while unemployment will remain high through next year, the European Commission said Tuesday.
The Dow Jones Industrial Average could very well rise another 10 percent by year-end, Wharton School of Business finance professor Jeremy Siegel said Monday.
According to Morgan Stanley’s banking research team, one of the focus areas of the upcoming AQR and banking stress tests is likely to be the definition of a non-performing loan (NPL). These, as FT Alphaville has noted in the past, vary somewhat radically across Europe. What’s more, even with recent reclassifications, they’re are still rising:
Market commentary at that time suggested that flooding the economy with liquidity would lead to a “wall of money” flowing out of Japan in search of higher yields, affecting asset prices worldwide. So far, however, Japan’s wall of money remains missing in action
The paper offers a depressing portrait of where the economy stands nearly six years after the onset of recession, and amounts to a damning indictment of U.S. policymakers. Their upshot: The United States’s long-term economic potential has been diminished by the fact that policymakers have not done more to put people back to work quickly. Our national economic potential is now a whopping 7 percent below where it was heading at the pre-2007 trajectory, the authors find.
Twitter is moving forward with the most hyped stock offering of the year this week, and investor demand appears to be off the charts. After initially planning to sell shares for $17 to $20 each, the company now expects them to go for $23 to $25 each, which will value the company at up to $13.6 billion. Not bad for a firm that had only $317 million in revenue last year and has never earned a profit.
Even if Japanese policy makers manage to pull off 2 percent inflation within their two year target, it may not be enough to save the struggling economy, Capital Economics has warned.
Global stock markets are set to peak in the next few months but hungry investors should beware, according to Bob Janjuah, Nomura’s uber-bearish strategist, who believes a hefty dip in global stock markets is just around the corner.
But lower prices? Paul Krugman has a great explanation here of why that’s a bad thing, the thought being that if prices are constantly dropping, consumers will delay spending. Why buy that F-150 today when it will be effectively “cheaper” next week?
The big difference is that the FTSE index gods don’t consider South Korea an emerging market—they switched South Korea over to the developed side of the ledger in late 2009. So the Vanguard FTSE Emerging Market ETF has no money invested in South Korea. The MSCI index gatekeepers maintain that South Korea is still an emerging market. Thus, the iShares MSCI Emerging Market ETF has nearly 16% invested in Korea. It’s largest holding is Samsung Electronic (SSNLF).
Samsung has promised to introduce devices with fully folding displays to the general market in 2015. As part of Samsung’s Analyst Day, the South Korean electronics company has announced it will be bringing folding display devices to the market at some point in the future.
Fast-forward a few years, and the ascendance of the iPad and competing tablets with high-resolution LCD displays has changed everything. In 2011 consumers snapped up 23 million e-readers, nearly all with E Ink’s technology. Just a year later they bought only 15 million