Yesterday, Colorado-based Sports Authority filed for Chapter 11 in Delaware bankruptcy court. Perhaps you think this is just another case of too much retailing for a slowing economy. This would be partly true but the whole story is darker than that.
Well dear reader, were you surprised that the US economy was so strong that it added a net 242,000 new jobs in February when so many people you know are struggling to find work or make ends meet? Welcome to the twilight zone of government statistics.
JP Morgan has been a resolute gold bear for years now, which is kind of ironic because the original J P himself was the world’s biggest believer in gold and actually used his personal gold hoard to bail out the markets and the US Treasury back in the collapse of 1907.
Every so often, I threaten my TV with extreme violence. I’ve noticed that I’m almost always watching CNBC at the time. I know I shouldn’t do that but I must admit to a morbid fascination with pure idiocy.One of the stupidest things they say—and they say it many times a day—is that a 20% drop from a market high is a bear market. If the index is not down 20%, well then you must be in a bull market. Terms like bull and bear used to mean something. But not on CNBC.
Readers will be familiar with my view that we are now in an earnings recession— year-over-year S&P500 earnings are now down three quarters in a row and I’m confident we are headed for more.
Can the economic news get any worse? Today, February 29, we got three reports of new data and they were all terrible. Now I know why they call this a leap year, as in leap off a cliff.
With the fourth quarter earnings season almost completed, Q4 Earnings per Share (EPS) for the S&P500 are down 3.3% year over year (YoY), making this the third consecutive quarter of declining YoY earnings.
Analysts at the German bank told investors on Friday (February 26, 2016) that they should buy the precious metal. “Gold is still expensive,” they said “but rising economic risks and market turmoil mean investors should buy it for insurance.”
The second estimate of real US fourth quarter GDP released today was a miserable seasonally- adjusted annual rate of 1.0%. But it was up from the even more miserable first estimate of fourth quarter growth of 0.7% which came out at the end of January. The second estimate was even above the consensus range. Good news, right?
This major gold producer opened down 10% this morning (February 26, 2016) because of the earnings news released the night before. Were the earnings that bad? No, not at all. Once again, the market sells when it should buy and buys when it should sell. Continue reading “Pick of the Week: Goldcorp (GG: NYSE)”