Tag Archives: capital flows

Consumer price inflation still refuses to surge; here is why

The snow has melted and it’s time to make plans for the future again. And like every spring, those plans are likely to include what has become known as “reflation” — inflation increasing again to a level where it can eat away at the mountain of debt the world’s big economies have to deal with.

Will consumer price inflation, rather than inflation in asset prices like property and securities, finally take off? There have been two interesting points of view last week on this issue.

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A ‘Powell put’ is not guaranteed for the markets

Everybody is waiting for Jay Powell, the new Fed Chair, to set out his vision this week. The main question is: will there be a “Powell Put” just as there has been a Greenspan put, a Bernanke put and a Yellen put?

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Sell signal still flashing despite the stock market correction

The past week has not been encouraging for investors, with many asset classes haemorrhaging funds at increased speed.

The week before that, on January 30, the Bank of America Merrill Lynch’s Bull/Bear indicator triggered a sell signal for the first time in five years, and markets sold off.

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Sell signal finally triggered, stock markets sell off

What a week last week was for stock markets, and especially for one particular indicator. The Bank of America Bull/Bear indicator, which the week before last came within a whisker of the Sell signal, last week went above it, for the first time in five years.

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Stock market sell signal almost triggered for the first time in five years

The Bank of America Merrill Lynch Bull/Bear indicator last week hit the highest level since its last sell signal, just as U.S. President Donald Trump took credit, once again, for the surge in the stock market.

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‘Sell’ signal inches forward as stock market froth rises

Sentiment was getting even closer to triggering a “sell” signal in the stock markets last week, as investors’ enthusiasm climbed even more.

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As market bubbles keep inflating, signal gets close to ‘sell’

Investors’ optimism remained at very high levels, despite the beginning of tapering of quantitative easing by the European Central Bank (ECB), tensions with North Korea and the Catalan crisis.

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Euphoria grips the markets, but can it last?

Last week was a feast of records for Wall Street: the S&P 500 recorded six consecutive highs, something not seen for two decades. The streak only ended after a jobs report that showed the first negative reading in seven years, skewed by the hurricanes that hit the U.S. in September.

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Bank of England makes another monetary policy mistake

The Bank of England’s decision to borrow Mario Draghi’s bazooka has had immediate consequences: investors rushed into bonds like they’re the best investment out there. And what else could they have done? Ever since the financial crisis, central banks have dictated where investors should put their money, picking winners and losers in the markets with their asset purchases.

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The risk rally looks set to continue

The recent risk rally still has legs — at least that’s the case judging by the Bull & Bear indicator compiled by Bank of America Merrill Lynch.

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