Financial Review

Flying Burritos in the Matrix


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ECB stands pat. Phoenix real estate: inventories up. Oil prices: inventories down. Mario goes mobile. PlayStation Slim. More M&A. Flying burritos. BAML thinks we’re in the matrix. Financial Review by Sinclair Noe for 09-08-2016 DOW – 46 = 18,479 SPX – 4 = 2181 NAS – 24 = 5259 10 Y + .08 = 1.62% OIL + 1.83 = 47.98 GOLD – 6.80 = 1339.20   European Central Bank policymakers had expressed concerns following the Brexit vote; they said they were ready to unleash fresh stimulus to support the Eurozone if needed, but economic data since has been mixed and ECB President Mario Draghi hasn’t spoken publicly for seven weeks. Today, Draghi announced no change. The ECB left the main refinancing rate at zero, the deposit rate at minus 0.4 percent and asset purchases at €80-billion-euro a month. The ECB’s position is that the QE program has the flexibility to be adjusted. The limits on individual bond purchases could be raised again, or the central bank could drop its self-imposed rule that debt is only eligible if it has a yield higher than the deposit rate. The ECB cut the 2017 and 2018 GDP forecasts for the Eurozone and said he sees inflation picking up later in 2016. If you are thinking that doesn’t make much sense, you are correct. The markets didn’t buy it either.   The 30-year fixed-rate mortgage averaged 3.44% in the September 8 week, down from 3.46% in the prior week. The 15-year fixed-rate mortgage averaged 2.76%, ...
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Financial ReviewBy Sinclair Noe