The Daily Treasury Statement data for the end of August showed some improvement in total tax collections, including a slight uptick in withholding taxes and an even bigger increase in excise taxes.
The numbers suggest that an early summer slowdown has…
The Daily Treasury Statement data for the end of month August showed some improvement in total tax collections, including a slight uptick in withholding taxes and an even bigger increase in excise taxes.
The numbers suggest that an early summer slowdown has ended. After the expected downward revisions in June and July jobs data, the August uptick in jobs was not a fluke. And the excise tax data suggests strong retail sales.
So, not an altogether bad summer – if you happen to be a politician or government taxman. But what about for investors?
The post These Numbers Could Push the Fed to Do Something Stupid appeared first on Lee Adler’s Sure Money.
The data suggests that the economy has perked up from some softness in the previous 3 months. That will encourage the Fed not only to continue tightening. Not only that, but now a Fedhead has come out suggesting that policy should be even more restrictive. But will the Trump Regime employ countermeasures to boost stocks?…
Gold shows signs of bottoming an important cycle, and while miners have been getting hammered I have picked a falling knife to try and catch. It looks better than the rest.
There are enough red flags to suggest that a top is finally forming. Here’s what to look for.
Wall Street traders await the first Friday of every month with bated breath.
Why? Because it’s Nonfarm Payrolls Day!
When the news is posted at 8:30 AM ET, the market often gyrates wildly in response. And today was no exception!
So let’s walk through exactly what happened in the markets this morning, and look at what impact we can expect this to have moving forward.
The post Here’s What We Can Expect from a “Head Spinning” Nonfarm Payrolls Day appeared first on Lee Adler’s Sure Money.
Europe has always played a huge role in the US markets. The US Treasury reported that European investors and central banks held $1.6 trillion of US Treasury securities in June. More importantly they had purchased $114 billion of that over the past year, including $32 billion from April to June.
And although there’s no breakdown of US stock and corporate bond holdings by country, Treasury holdings are about one third of total foreign securities holdings. Assuming that ratio applies to European holders, then they hold a total of roughly $4.8 trillion in US assets, and added nearly $100 billion of that over the April-June period.
There’s little doubt that this has helped drive the stock market blowoff.
That cash flows into the US markets. Even if they are not direct purchases of US stocks, when European investors buy Treasuries, most of those purchases are from US Primary Dealers. The dealers use some of that cash they get in those sales to Europeans to buy stocks. When European investors, or US corporations in Europe, buy US assets, that adds liquidity to the US system and fuel for the inflation of the US stock market bubble.
The post This Foreign Market “Contagion” Is About To Go Viral appeared first on Lee Adler’s Sure Money.
Smoke and mirrors continue to drive lending and deposit growth in the European banking system. But the reckoning is coming.
While the miners plumb new depths in their search for the bottom, the metal itself is doing better.