CDS – Credit Defaults Swaps blowing out in Europe as negative deposit rates are having a terrible impact. Tech stocks blowing up as earnings and outlook are really concerning investors.
Oil continues to get hammered and now below $30 per barrel – even with the rumors flying around that there will be a special/emergency meeting with OPEC/Non-OPEC countries in an effort to stabilize prices.
Japan market crumble, bond yields are dropping and all eyes are on the Fed’s next move. Listen in as we dive deep into the real news that matters most for investors.
Click HERE for Show Notes and Links
Japan reeling after the BOJ implements negative rate policy – Yen up 5% since 1/29/16 and markets tanking (Nikkei dropped 5.5% last night) — Japan 10-year falls below 0% for first time
FACT – Negative rates are not good for markets – Central Banks are now tinkering with tools they have no idea what outcome will be. (Yen rallying again tonight – now at 114.31)
Yen Chart
The biggest concern right now may be that China devalues the Yuan after the Chinese New year Holiday.
The global financial situation is getting worse as seen by the Contingent Default Swaps (CDS) – remember those?
CDS Spreads Chart
Interesting: Last year, the number of dividend reductions far surpassed 2008.
Dividend Reduction Trend
Goldman Sachs Abandons Five of Six ‘Top Trade’ Calls for 2016 – Inflation, dollar bullish call, Emerging market stocks, U.S. banks and a few others. So much for the big boy’s being right…
There has been a lots of talk about a potential U.S. recession. There are lots of voices that are protesting that concept. There are some areas that are clearly in recession.
ISM Composite Chart
Oil at $30 a barrel is blowing a hole in the insurance that U.S. shale drillers bought to protect themselves against a crash. Companies including Marathon Oil Corp., Noble Energy Inc., Callon Petroleum Inc., Pioneer Natural Resources Co., Rex Energy Corp. and Bonanza Creek Energy Inc. used a strategy known as a three-way collar that doesn’t guarantee a minimum price if oil falls below a certain level, company records show. While three-ways can be cheaper than other hedges, they leave drillers exposed to sharp declines.
May be some market moving potential as Janet Yellen is giving testimony to congress over the next few days. Will the Fed dare to hike rates again anytime soon? (U.S. yields have slid since the rate hike)
What is this all about? A record 4,279 individuals renounced their U.S. citizenship or long-term residency in 2015, according to data released by the Treasury Department.
LinkedIn (LNKD) stock tumbles 50% after earnings release. Are advertisers feeling the pinch and finally giving up on some social media? (FB,