Credit Suisse analysts must have been furious Monday morning. After working all weekend on a brand new upgrade of the U.S. equity markets they needed one more day to touch up the report before issuance. Lo and behold, Government Sachs beat them to the punch with their own upgrade of U.S. equity markets on Monday morning. Poor guys because it’s one heck of a good report. Credit Suisse not only upgraded their outlook on U.S. stocks (new S&P target of 1050), but issued an excellent piece on why this bull run is unlikely to be similar to past bull markets.
They list 6 reasons to be less optimistic in the long-term and why this will almost certainly be a W shaped recession (they currently believe we are on the first V so expect a double dip down in 2010). The 6 reasons will sound awfully familiar to regular readers, but CS does a nice job of condensing them:
1) There is over $7 TRILLION in excess leverage in the system:
2) Global housing prices are still too high:
3) U.S. housing inventories could hinder home prices for another 2-3 years:
4) Global growth going forward is likely to be below trend:
1. a lower investment share of GDP tends to lead to lower investment growth;
2. the demographics are clearly deteriorating (the working age population is declining in Europe from next year and is contracting by nearly 1% pa in Japan)
3. there is more red tape / regulation.
5) Margins are likely to contract further:
1. corporate tax rates may have to rise
2. emerging markets are causing commodity prices (the input costs for developed market companies) to be structurally higher.
3. more red-tape / regulation.
6) There is no big cap bull market theme:
Each bull market typically needs a different driver. We believe that the new key themes of the new bull market are the Non-Japan Asian consumer and technology. Yet, European equities don’t have strong exposure to this theme.
With a subtitle like “From tech stocks to high gas prices, Goldman Sachs has engineered every major market manipulation since the Great Depression – and they’re about to do it again” run, don’t walk, to your nearest kiosk and buy Matt Taibbi’s latest piece in Rolling Stone magazine. One of the best comprehensive profiles of Government Sachs done to date. Speaking of GS, they sure must be busy today, now that Bernanke is about to be impeached and take the fall for all their machinations.
Well, it finally happened. Mark your calendars for the year 2016 as 'the year' a real One World Currency has been announced. But don't worry - as we explain in Splitting Pennies - Understanding Forex - MONEY DOESN'T EXIST.
How is it possible, you say - when we haven't heard about it in the news? Let's start with the 'lead' story on this breaking event:
The love affair was no surprise. Nor was the fact that the IMF had taken part in the immolation of Greece. No, the surprise was that the IMF would publicly disclose the extent of incompetence and massive rule breaking that had taken place.
The Ambrose Evans-Pritchard byline told me this would be a good story. Here’s his lead:
The International Monetary Fund’s top staff misled their own board, made a series of calamitous misjudgments in Greece, became euphoric cheerleade...
This morning's Second Estimate of Q2 GDP at 1.1% was a ho-hum event in advance of Fed Chair Yellen speech at Jackson Hole. And indeed the intraday range volatility of today's session was at the 70th percentile of the 165 market days of 2016 and the widest in 37 sessions. The S&P 500 opened higher, rallied with the opening of her speech, and then sold off sharply during with Vice Chairman Stanley Fischer's suggestion that a couple of rate hikes this year were possible. The index bounced back later in the afternoon to its -0.16% Friday close. The index is down 0.68% for the week.
The yield on the 10-year note closed at at 1.62%, up four basis points from the previous close.
Here is a snapshot of past five sessions in the S&P 500.
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Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer. One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."
Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.
Genetic components are the DNA sequences that are 'inherited.' Some of these genes are stronger than others in their expression (e.g., eye color). Yet, some genes turn on or off due to external factors (environmental), and it is und...
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Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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