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  1. Mnuchin Visits Fort Knox, Says "Gold...

    about 2 hours ago
    Zero Hedge
  2. In Angry Tweetstorm, Ron Paul Lashes...

    about 3 hours ago
    Zero Hedge
  3. "Democrats Badly Need Barack Obama" In...

    about 3 hours ago
    Zero Hedge
  4. Morning Joe Panel Melts Down After...

    about 3 hours ago
    Zero Hedge
  5. Think Like A Corleone

    about 3 hours ago
    Zero Hedge
  6. Fed Still Tries To Spur Banks, But the...

    about 3 hours ago
    Wall Street Examiner
  7. Trump Unveils New, Dramatic...

    about 4 hours ago
    Zero Hedge
  8. An Unexpected Problem Emerges: Chinese...

    about 4 hours ago
    Zero Hedge

Trade Idea of the Day Presented by: Zero Hedge

Grab A Beer Philadelphia, The Soda Is Too Damn Expensive

What happened: Turns out when soda cost the same as beer, people choose to drink beer. That is what is happening in Philadelphia. The city’s 1.5 cent per ounce tax on soda has made beer a cheaper option. But that isn’t the only effect of the ill conceived plan to raise revenue. The tax didn’t raise the money... Read More

Tesla Stock Slumps After "Terrible Bond" New Issue Tanks

Tesla stock prices has almost erased all of its post-earnings gains as the company's recently issued $1.8 billion junk bond is tumbling... TSLA stocks is giving back its post-record-cash-burn gains... As the newly issued junk bonds are suddenly coming face to face with this ugliness... As MarketWatch reports, the 5.3% notes due 2025 are now trading as high as 5.75% yield (with the risk spread blowing out from 330 to around 370bps) AllianceBernstein’s Distenfeld said investors are still starving for income in a low-interest rate, low-yielding world, and said it is important to be patient -- and disciplined -- in this market. “Tesla was an aggressive deal for a company that is not expected to be cash-flow positive for years,” said Gershon Distenfeld, head of credit at asset manager...

Chicago Fed "Index Points to Growth near Historical Trend in July"

From the Chicago Fed: Index Points to Growth near Historical Trend in July The Chicago Fed National Activity Index (CFNAI) moved down to –0.01 in July from +0.16 in June. Three of the four broad categories of indicators that make up the index decreased from June, and three of the four categories made negative contributions to the index in July. The index’s three-month moving average, CFNAI-MA3, moved down to –0.05 in July from +0.09 in June. emphasis added This graph shows the Chicago Fed National Activity Index (three month moving average) since 1967. Chicago Fed National Activity Index Click on graph for larger image. This suggests economic activity was close to the historical trend in July (using the three-month average). According to the Chicago...

Foreign Banks’ Have a Greater Impact on This Bull Market Than You May Think

The Fed and the US Treasury are the 800 pound gorillas of the US stock and bond markets. Their actions have largely determined the direction of the markets for the past 15 years. That's why I developed the LAMPP indicator to track their combined impact, and why it has worked so well. I expect it to continue to do so far into the future. It behooves us to pay attention to its message from week to week. At times when the LAMPP is yellow, some of the dozens of other market liquidity indicators that I track may help us to understand whether to stop or go. When the Fed is not controlling the market, something else is - and it's probably not what you're being told. Here's how to understand the impact of foreign banks, and what it means for you... The post Foreign Banks’The post Foreign...

Gold Coins Have Been South Africa's Best Investment For 50 Years

In the 50 years since the first Krugerrand was minted in South Africa, the gold coins have turned out to be one of the best investments in the country. As Bloomberg reports, the Krugerrand originally sold for 27 rand (then worth $35) back in 1967. One ounce of gold is now worth 16,840 rand ($1,273), boosted by a combination of rising global gold prices and a depreciating local currency. Since 2000, the rand value of the coin has outperformed local property, the stock market and gold priced in dollars... Which is exactly what it should do as a preserver of wealth as faith in fiat dissolves. However, there are further fundamental reasons to support gold gains from here... Gold supply from mines has fallen "dramatically" this year, bolstering prices of the safe-haven asset in...

China moves to curb overseas debt-fueled acquisitions (+ENCOURAGE "NEW SILK ROAD" INVESTMENTS)

The curbs were announced in a document released on Friday by the state council, China's cabinet, in the latest move to halt a string of foreign acquisitions. This week the International Monetary Fund described China's credit-fuelled economic strategy as dangerous, in a strongly worded statement warning that the country's approach risks financial turmoil. Raising concerns that some of the companies involved may be taking on too much debt, the council said: "There are great opportunities for our nation's companies to embark on foreign investment, but they also face numerous risks and challenges." ... The document limits overseas investments in areas such as hotels, cinemas...

Update: For Fun, Stock Market as Barometer of Policy Success

Note: This is a repeat of a June post with updated statistics and graph. There are a number of observers who think the stock market is the key barometer of policy success. My view is there are many measures of success - and that the economy needs to work well for a majority of the people - not just stock investors. However, for example, Treasury Secretary Steven Mnuchin was on CNBC on Feb 22, 2017, and was asked if the stock market rally was a vote of confidence in the new administration, he replied: "Absolutely, this is a mark-to-market business, and you see what the market thinks." And Larry Kudlow wrote in 2007: A Stock Market Vote of Confidence for Bush: "I have long believed that stock markets are the best barometer of the health, wealth and security of a nation. And today's...

Stocks turn higher after multiple reports that Bannon has left the White House

U.S. equities rose on Friday after multiple reports said Steve Bannon, one of President Donald Trump's top advisors, was leaving the administration. ... Tension between Bannon and other top advisors to Trump, including Chief Economic Advisor Gary Cohn and National Security Advisor H.R. McMaster, had been festering inside the White House. On Wednesday, Reuters reported that discord between Bannon and McMaster is destabilizing Trump's team. ... Bannon has been the advisor pushing the hardest for a more nationalistic approach to U.S. economic policy. However, his influence has reportedly waned in the Trump administration. ... If Bannon leaves "I think that's positive for the market because it means...

Lawler: Early Read on Existing Home Sales in July

From housing economist Tom Lawler: Based on publicly-available local realtor/MLS reports from across the country released through today, I project that US existing home sales as estimated by the National Association of Realtors ran at a seasonally adjusted annual rate of 5.38 million in July, down 2.5% from June’s preliminary pace and up 0.9% from last July’s seasonally adjusted pace. On the inventory front, local realtor/MLS data suggest that the YOY decline in active listings last month was slightly less than in June, and I forecast that the NAR’s existing home inventory estimate for July will be 1.98 million, up 1.0% from June’s preliminary estimate and down 6.2% from last...

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