Asset Management & Market Research

Thursday reads & daily charts ...

We scour the best of publications that cover the markets & economy, the world of business & finance, asset & wealth management, monetary & fiscal policy, Europe & Asia, the news & politics, science & technology … and throw in a bit of arts & entertainment, just to keep it light. Here’s what we found particularly compelling in the last 24 hours:

Did The Two Biggest Market Trends Of The Summer Just Fell Apart? (BI)

The End of Consensus Politics in China (Stratfor)

Junk Rout Conundrum: If No One Gets It, Do I Buy or Sell? (Bloomberg)

Saut: 10-Year Treasury Yield Completes A Death Cross (Minyanville)

The Italian Conundrum (WSJ)

Transformation or Bust (Mauldin)

The Slow Recovery in Consumer Spending (Liberty Street/NY Fed)

American Workers Are Older Than Ever (Businessweek)

Why the global recovery is so slow (Hadas/Reuters)

The charts below are courtesy of the WSJ and Yahoo Finance.

The WSJ reports that U.S. home prices have slowed down from their breakneck growth pace of the past year, according to CoreLogic’s price index. Prices were up 7.5% for the year ended in June. That’s down from a revised 8.3% year-over-year increase reported for May, which was initially reported as an 8.8% gain. By contrast, home prices last June had advanced 11.4% on a year-over-year basis. The deceleration is probably good news, given that more housing markets have begun to look slightly overvalued on a price-to-income measure. And excluding 2013, the June year-over-year gain is still better than any since 2005.

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Yahoo Finance reports that, according to a recent report from Sundial Capital Research, when the S&P hits a 52-week high while the Russell 2000 is more than 5% below its own 52-week high, the S&P declines by an average of 2.1% in the following month. Small-cap swoons like the one happening now usually occur when investors look to cut down risk and move into more defensive sectors.

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Author: Kevin Lane

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