Yes I realize Ukraine is on the brink of civil war with highly significant consequences for all and money is flowing in to the safety trade of U.S. govt debt pushing the 30 year treasury yield down to 3.43% but one would think PFE, a relatively safety play in itself possessing a forward PE of 12, a dividend yield of 3.5%, a stock down nearly 10% in the past week alone, would find some support soon. At least outperform the general market. All seems rather ominous and does not bode well for the larger equity indexes.
Speaks volumes to just how out of touch and incompetent Sears management is. Sears stock heading to single digits in the not too distant future.
There is no future for dirty coal. One must face that hard reality or suffer the painful consequences.
The only factor keeping BTU shares above $10 was exports to Asia. That cash cow is now over. Act accordingly.
Generates the majority of it's revenue domestically. Trades close to 11 times next year's projected earnings. Although the payout ratio is high compared to the norm, none of the major brokerages see T's dividend in danger of being cut. Yes competition is heating up, and margins might fall in the coming quarters but that reality is being somewhat offset by the end of large phone subsidies. One has to begin to believe at these levels, with yields on govt debt at historic lows, that any potential bad news is already priced into the stock. I am stepping in slowly, initiating a position in T.
The Fed is tapering into weakness and will continue to do so because they have no choice. In the short term the funding needs of the United State will actually decline as the Govt's deficit shrinks. If Yellen and the Fed were to continue the present purchasing pace they would be buying virtually all federal govt debt issued, which is not possible considering many financial institutions need treasuries in their portfolios as collateral, to meet mandates et cetera.
Also, if the Fed were to have reverse course and continue tapering due to economic weakness they would lose all credibility and it would be affirmation tapering has been a failure, only a drug to prop up Wall Street and the Casino Bankers.
So basically the world economy is now on it's own after more than five years of Bernanke shenanigans, murdering free market forces, making it impossible to accurately price risk and determine the true price of assets. This hard reality is first revealing itself in the emerging markets were hot money hid their many sins. In response they are now raising interest rates in an attempt to attract capital but they are doing so into a weakening economy, a recipe for disaster. Unlike many emerging markets China has the reserves to temporarily hold off the inevitable but eventually their huge shadow banking ponzi scheme collapses and when it does it will reverberate across the globe. Many, many global banks have lent huge sums to Chinese banks and will suffer mightily, much like during our 2008 housing debacle.
What makes this coming disaster even more frightening is now that the Fed is out of the picture the cure must originate from the fiscal side, our highly polarized, do nothing govt. Scary thought.
With each $10 Billion Yellen pulls from the economy in the coming months, the hype currently being pushed by Wall Street thugs that all is well and our QE addicted world economy doesn't need the fix provided by the fed will progressively be proven painfully wrong.
A short squeeze rally that will not last unless we see a major move up in 30 year yield which has not come to fruition. T simply has become a hedge, a safety play, has zero relevance to overall market move. The T equation: Market up, T down. Market down, T steady. Translation, the boys on Wall Street hate T's guts.
Restored my faith in the corrupt plutocracy destroying our nation. Obscene pay for unprecedented failure.
Now comes the moment of truth. If the market persists to falter the addicted boys on Wall Street will be screaming for their QE fix. The question becomes can the Fed renege on their taper and continue on QE infinity without a major currency crisis and loss of confidence? And if Yellen says no and they remain in taper mode does the market continue to falter with the realization the gains were all an illusion built on unorthodox Fed policy. It could very well be 2008 was a fatal blow and Bernanke only managed to prolong the ship from sinking. Bottom line this may be much more than a correction but a disrobing of many, many severe structural problems worldwide, a continuation of the 2008 meltdown. Watch the 30 year treasury, if yields continue to slide watch out! There will be no place to hide. I would definitely purchase a hedge in this environment, SDS or alike.
The direction of the 30 year treasury has been an excellent indicator of market direction and it continues to point down for equities.
I suspect the money center banks like Chase will be buying S&P futures like crazy to prop market up. These Casino Banks are sweating bullets, still remain highly leveraged and way too bullish. If indeed they fail to prop markets up then it means the Fed's Ponzi Scheme is over and we definitely see at least a 10% correction and more like 15 to 20%.
Makes no sense.
Based on the action of the 30 year treasury, this could very well turn into something beyond a garden variety correction...Many structural issues raising their ugly heads worldwide with no easy fixes.
Casino banks will be buying S&P futures heavily, they know their bonuses and the economy is totally reliant on the equity markets. But will they succeed? Or will the emerging market death spiral win the day?
That was just too easy to call. Nothing made sense about that bogus rally yesterday. Bonds are indicating we blow right through S&P 1772 today down to the 1758 level.
These wackos are simply relentless, day after day of posting their ignorance and hate.
Back to $200
Simply short covering rally based on not closing below 1772 yesterday, it won't last.
Bernanke has been designated a hero by Wall Street and the Casino Bankers who have profited handsomely from Ben's radical policies that has exploded the Fed balance sheet, murdered the free market and created endless QE addicts. But now that the tapering has begun, even in this very early stage, the damage begins to reveal itself in the fragile emerging markets who were able to hide their many sins under the cover of Bernanke's unprecedented money printing.
The narrative the boys on Wall Street are giving is tapering is a good thing, that the U.S. economy is now capable of organic growth on it's own, that the emerging market troubles are rather insignificant and will not deter the developed economies rosy outlook.
Well frankly I find it hard to believe that the deep troubles facing Turkey, India, Russia, China, Venezuela, Argentina, Brazil, Thailand and a host of other countries will somehow be acceptable collateral damage and not affect the U.S. negatively in a rather large way. The U.S debt market doesn't seem to buying into Wall Street pundit's pollyanaish point of view as the yield on the 30 year treasury has dropped from over 4% to 3.68% in the past two weeks alone. To put this in perspective, this yield is touching near 50 year lows! One would think if there was any hint of a real recovery the 30 year would pop well over 5%, but near equity all-time highs it plummets! In my mind this is a rather sobering reality and is a harbinger of bad things to come for stocks. We are only down a bit over 3% from the peak.
The question becomes what if the market and world economy gains were all built on QE, money printing, and more and more devastating bubble are revealed as the Fed continues to taper pushing stocks lower? Does the Fed simply reverse course and continue on QE infinity? Wouldn't that be an admission Fed policy has been a failure, it's only purpose to prop up Wall Street, to hide the many growing bubbles? I think the Fed has played it's last card.