Financial Review

A Slightly Older Mindset

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-08-18-2015.mp3Podcast: Play in new window | Download (Duration: 13:17 — 6.1MB)Subscribe: Apple Podcasts | Android | RSS  Financial Review by Sinclair Noe for 08-18-2015.   DOW – 33 = 17,511 SPX – 5 = 2096 NAS – 32 = 5059 10 YR YLD + .05 = 2.20% OIL + .51 = 42.39 GOLD + .10 = 1118.50 SILV – .45 = 14.97   When Chinese markets catch pneumonia, US markets sneeze. That seems to be the trend lately. And once again, Chinese markets were under the weather as the People’s Bank of China took fresh steps to offset capital outflows prompted by its weakened currency. China’s central bank placed $18 billion worth of seven-day reverse repos into the money market during the session – the largest single day injection in almost 19 months. The latest rout raises fresh concerns that the Chinese economy is in dire need of stimulus. Shanghai -6.1%; Shenzhen -6.6%.   Across the Atlantic, European stocks didn’t perform well either. The German DAX dropped 0.2% and the French CAC fell 0.3%. The devaluation in China probably does not have the dire repercussions some have suggested, but it does fit within the broader narrative of a slowing global economy, with less support from emerging markets. And that, in turn, would indicate rising market volatility. At its peak last week, the VIX Index, which measures volatility of the S&P 500 Index, was up 50% from the previous week’s low. There are bigger moves beneath the surface. During the recent earnings season, more than 5% of …

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