Financial Review

See Opportunities

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-12-01-2015.mp3Podcast: Play in new window | Download (Duration: 13:17 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe for 12-01-2015 DOW + 168 = 17,888 SPX + 22 = 2102 NAS + 47 = 5156 10 YR YLD – .07 = 2.15% OIL un 41.65 GOLD + 4.30 = 1069.80 SILV + .10 = 14.27   More than 180 nations are gathered in Paris to discuss a far-reaching agreement to reduce global carbon emissions. The emerging deal would require wealthy countries, including the U.S., to cut their own pollution while helping poorer countries shift from dependency on fossil fuels and mitigate the effects of climate change. President Obama held a news conference today in Paris at the U.N. global climate summit; Obama said the world needs an enduring framework for addressing climate change and that he would seek an agreement that would boost economies as well as help the planet’s environment. President Obama said the U.S. will meet commitments to help finance developing nations’ efforts to reduce carbon pollution, challenging congressional Republicans who have fought most of his environmental policies.   Some people look at the call for reducing carbon emissions and only see expenses, while others see opportunities. The number of annual patents for green energy has increased fivefold since 2002 and this year is on track to break another record after eight consecutive increases. Most patents in 2015 have been for solar technologies, 586 granted in the first half of the year; followed by fuel cells, electric vehicles, …

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Financial Review

Remember Remember

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-11-05-2015.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe for 11-05-2015 DOW – 4 = 17,863 SPX – 2 = 2099 NAS – 14 = 5127 10 YR YLD + .02 = 2.25% OIL – .94 = 45.38 GOLD – 3.90 = 1104.60 SILV – .12 = 15.04   Janet Yellen testified on Capitol Hill yesterday afternoon. Yellen was speaking at a hearing about financial regulation. Congress in 2010 created the position of vice chairman for regulation at the Fed and required that person to report regularly, but 5 years later, the position has not been filled; Ms. Yellen testified instead. The conversation quickly turned to interest rates, and Yellen said the Fed could raise rates in December; she thinks the economy is performing well, and so a rate hike would be appropriate, but no decision has been made. The markets are now putting the odds of a December rate hike at almost 60%.   The Bank of England said “no” to an interest rate hike this morning; they cited gloomier prospects for global growth. Bank of England chief Mark Carney, who had previously played down threats to major economies from slowing growth in China and other emerging markets, sent a cautious message that pointed to UK borrowing costs remaining on hold until 2017. The pound fell a full cent against the dollar in response, but the dollar handed back all of its gains in morning trade to stand …

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Financial Review

Justice Delayed is Par for the Course

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-02-18-2015.mp3Podcast: Play in new window | Download (Duration: 13:17 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe DOW – 17 = 18,029 SPX – 0.66 = 2099 NAS + 7 = 4906 10 YR YLD – .08 = 2.06% OIL – 2.56 = 50.97   The S&P 500 closed above 2,100 for the first time ever on Tuesday, delivering year-end target goals to Goldman Sachs, Credit Suisse and Barclays nearly 11 months early.   Greece confirms that it plans to submit a request to the euro zone tomorrow to extend a “loan agreement” for up to six months, but EU paymaster Germany says Athens must stick to the terms of its existing international bailout. Greece wants to maintain a budget surplus before interest payments equal to 1.5 percent of gross domestic product; the current plan calls for a budget surplus equal to 4.5 percent of GDP. It’s still unclear what the terms of the extension will look like, as both Athens and its creditors seem determined not to compromise over the loan’s conditions.   The Federal Reserve released minutes from the January 27-28 Federal Open Market Committee meeting. The minutes reveal that “Many participants indicated that their assessment of the balance of risks associated with the timing of the beginning of policy normalization had inclined them toward keeping the federal funds rate at its effective lower bound for a longer time.” Allow me to translate; the Fed would like to put off raising interest rates because the economy …

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Financial Review

Taking on Water

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-11-06-2014.mp3Podcast: Play in new window | Download (Duration: 13:17 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review DOW + 69 = 17,554 SPX + 7 = 2031 NAS + 17 = 4638 10 YR YLD + .03 = 2.38% OIL – .70 = 77.98 GOLD + 1.30 = 1142.30 SILV + .11 = 15.53 Record highs for the Dow Industrial Average and the S&P 500 index. Milk and cookies time. Outplacement consultant Challenger, Gray & Christmas says layoffs increased by 51,000 last month. Layoffs are down 4% from a year ago, and the increase in October follows a 14 year low in September. Meanwhile, the Labor Department reports the number of Americans applying for new jobless benefits fell by 10,000 last week, to 278,000; the eighth straight week under 300,000. This is all part of the setup for tomorrow morning’s monthly jobs report. The big news today comes from the European Central Bank; ECB president Mario Draghi announced the central bank will increase its balance sheet by €1 trillion, or about $1.2 trillion, over the next 2 years. Interest rates are already at record lows, and Draghi has said they can go no lower. The ECB has issued long-term loans to banks and started buying covered bonds in the hope of flooding the economy with enough liquidity to ease credit constraints. Purchases of asset-backed securities are due to start this month. Exactly what the ECB will purchase remains uncertain, but they are likely to move into the €1.4 trillion …

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Wednesday, March 19, 2014 – Behind the Curtain of the Mysterious Central Bankers

Behind the Curtain of the Mysterious Central Bankers by Sinclair Noe DOW – 114 = 16,222SPX – 11 = 1860NAS – 25 = 430710 YR YLD + .09 = 2.77%OIL + .67 = 100.37GOLD – 24.90 = 1331.60SILV – .20 = 20.71 Sometimes the stock market is a grand mystery, a riddle wrapped in a mystery inside an enigma. Sometimes the stock market is simple. Wall Street loves it when the Federal Reserve is throwing bags of money out of the helicopter that hovers over Wall Street. The traders get a little nervous when it looks like the free money might stop raining down on them. That doesn’t mean the Fed is stopping throwing money at Wall Street, just that traders are nervous. Today, the Fed FOMC wrapped up a two day meeting; they issued a statement; then Chairwoman Janet Yellen delivered a prepared statement; then she answered questions. The Fed statement indicated the Fed could and likely would continue with its low interest rate policy even after they reach their goals of full employment and 2% inflation. The central bank proceeded with its well-telegraphed reductions to its massive bond-buying stimulus, announcing it would cut its monthly purchases of Treasuries and mortgage-backed securities to $55 billion from $65 billion per month. I will now attempt to translate the Fed statement from Fedspeak to English. The statement said: the labor market is getting better but unemployment is still too high, household and business spending is decent but the housing market is …

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Thursday, January 09, 2014 – A World Of Central Bankers

A World Of Central Bankers by Sinclair Noe DOW – 17 = 16,444SPX + 0.64 = 1838NAS – 9 = 415610 YR YLD – .03 = 2.96%OIL – .67 = 91.66GOLD + 1.80 = 1228.70SILV + .02 = 19.65 If it’s not one central bank, it’s another. Today the European Central Bank and the Bank of England met to determine monetary policy. Back in November, the ECB cut interest rates to 0.25%, so there were no expectations of further rate cuts in today’s meeting. In Britain, which is outside the euro zone, the Bank of England left its benchmark interest rate unchanged at a record low of 0.5 percent. As the US Federal Reserve has been creating new dollars at the rate of $85 billion a month under Quantitative Easing, the Fed’s balance sheet has been growing, even as the ECB’s balance sheet has been shrinking. And even though the Fed announced it would scale back those purchases by $10 billion a month, that just means the Fed balance sheet will continue growing, just not as fast. Or the bottom line; the Fed is creating money and the ECB is not. Today, Mario Draghi, the president of the ECB said he wanted to “strongly emphasize” his earlier promise to keep monetary policy easy for as long as necessary. And Draghi said the ECB was “ready to consider all available instruments” to address either further weakness in consumer prices or increases in short-term money market rates that could put stress on …

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Thursday, April 04, 2013 – Experimental Therapies

The Wealth Protection Conference kicks off tomorrow afternoon in Tempe, Arizona. I will be the keynote speaker, starting at 4PM. This year’s roster of speakers includes Mark Liebovit, Nathan Liles, David Smith, Roger Weigand, Arch Crawford, Ian McAvity, and Bill Tatro. These are some of the best technical analysts in the markets and top researchers and economic minds, and me. The conference is Friday and Saturday. For more information: www.buysilvernow.com. To make a reservation, please call 480-820-5877. I hope to see you there. Experimental Therapies by Sinclair Noe DOW + 66 = 14,606SPX + 6 = 1559NAS + 6 = 322410 YR YLD – .05 = 1.76%OIL – 1.07 = 93.38GOLD – 4.30 = 1554.60 SILV- .08 = 27.00 A big day for central bankers. The European Central Bank left its benchmark interest rate unchanged at 0.75%, while the Bank of England held its key rate steady at 0.5%. With both central banks’ rates already at record lows, there might be little room to use interest rates as a stimulus. But the euro zone economies, like that of Britain, are stagnant and in need of help wherever they can find it. What to do when interest rates are already near zero? The Fed playbook calls for Quantitative Easing, and today the Bank of Japan took that playbook and put it on steroids. First in Europe, ECB President Mario Draghi says the ECB was looking for new ways to stimulate lending in the weak euro zone economy, and could move quickly, …

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Tuesday, January 29, 2013 – Stimulus Truths and Tweaks

Stimulus Truths and Tweaks by Sinclair Noe DOW + 72 = 13,954SPX + 7 = 1507NAS – 0.6 = 315310 YR YLD +.03 = 2.00%OIL + .88 = 97.32GOLD + 9.40 = 1664.90SILV + .54 = 31.48 We have a gaggle of economic reports this week and we’ll try to keep up. The Conference Board reported that its gauge of consumer confidence dropped to 58.6 in January, the lowest level since November 2011. Consumers are more pessimistic about the economic outlook and, in particular, their financial situation. The hike in the payroll tax is taking the brunt of the blame for the less-than-rosy outlook. Disposable income is actually declining. It’s hard to be happy when your purse shrinks. The sales price on existing homes dropped in November according to the S&P/Case-Shiller home-price index, down a non-seasonally adjusted 0.1% decrease in November following a 0.2% decline in October. After seasonal adjustments, the 20-city home-price index rose 0.6% in November. Despite the recent decline, prices were 5.5% higher than during the same period in the prior year, for the strongest year-over-year growth since August 2006. Tomorrow, we’ll get a glimpse of 4thQuarter GDP. The economy likely grew at a 1% pace, which is very weak. Also tomorrow, The Federal Reserve wraps up its first FOMC meeting for the new year. They will likely continue with a fairly aggressive approach to stimulate the economy. In December, the Fed committed to adding $45 billion of monthly Treasury purchases to the existing QE3 program to …

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Thursday, November 8, 2012 – Tools in the Toolbox

Tools in the Toolbox by Sinclair Noe DOW – 121 = 12,811SPX – 17 = 1377NAS – 41 = 289510 YR YLD un = 1.63%OIL + .60 = 85.04GOLD + 14.60 = 1732.90SILV + .47 = 32.41 Yesterday I was a guest on Bill Tatro’s radio show: All About Money, 2PM Pacific and Mountain, right here on MoneyRadio. Most of the time Bill’s show is Bill, and it’s great; he’s always entertaining and informative and I don’t agree with everything he says but I think he does a great job of saying it; so I’m always a bit honored when he has me on as a guest. It’s a different situation for me, being the guest, but Bill is an excellent interviewer. One of the questions he asked was, paraphrasing: “What tools does the Federal Reserve still have in their toolbox?” I gave the basic answer that they didn’t seem to have many tools left. I thought it was time for fiscal stimulus to match the Fed’s already extraordinary use of monetary stimulus. But, as I said, this was a really good question and so I did a little more research, and today I’m going to talk with you about the tools left in the toolbox. First, whether you like the Fed or not, the Fed’s actions have had an impact on the economy and the economy has shown signs of recovery; I’m not sure what else to call it when you have 32 months of employment growth, the Dow …

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Thursday, July 5, 2012 – The Incredibly Massive Libor Scandal, Snakes, Plus the Halftime Report

The Incredibly Massive Libor Scandal, Snakes, Plus the Halftime Reportby Sinclair NoeDOW – 47 = 12,896SPX – 6 = 1367NAS +.03 = 297610 YR YLD -.03 = 1.60OIL +4.46 = 92.12GOLD – 12.80 = 1604.90SILV – .59 = 27.80PLAT – 16.00 = 1479.00It was a busy day for the central bankers. It started with the Bank of England. A couple of months ago, the BoE stopped bond purchases; today they resumed the practice. The Bank of England Governor, Mervyn King announced they will increase bond purchase to 375-billion-pounds, or about $585-billion-dollars. They think this will help pull the UK from recession but they admit output will likely remain sluggish after contracting for the past two months. A few minutes later, the People’s Bank of China cut its key interest rate for the second time in a month  and allowed banks to offer bigger discounts on their own lending costs. The one-year lending rate will fall by 31 basis points to 6 percent and the one-year deposit rate will drop by 25 basis points to 3 percent effective tomorrow. Banks can offer loans of as much as 30 percent less than benchmark rates.A few minutes later, the European Central Bank cut its key interest rate by 25 basis points to a record low of 0.75 percent. ECB President Mario Draghi questioned the economic impact of cutting rates but did it anyway. He said the ECB is not “running low on policy options” but he didn’t say what the other options are. Draghi claimed …

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