Posts filed under “Currency”

Have we already enjoyed the Year End Rally?

A NYT column last weekend asked: Have we already enjoyed the Year End Rally? Today’s action makes that query all the more relevant — especially in light  of last week’s Dollar whackage:

Here’s the ubiquitous excerpt:

"THE stock market has had a great run over the last few months, but as the holiday season begins, some analysts are worrying that the traditional year-end rally on Wall Street may have already come and nearly gone.

Mary Ann Bartels, technical research analyst at Merrill Lynch, wondered in a note to investors whether the tendency for stocks to climb in the last couple of months of the year had been rescheduled this year for September and October.

“We think yes,” she wrote. She then acknowleged feeling torn between what her charts have told her and what the calendar and history have led her to expect.

“It is not our favored stance to be more toward the bear camp looking for a cyclical correction of 8 to 10 percent, but all of the market indicators suggest this is the more likely scenario over the coming weeks,” Ms. Bartels said. “What is surprising is that these readings are occurring at this time of year. Most years see a bullish year-end rally.”

She highlighted several exceptions that prove the rule, including three years in the 1990s when the Standard & Poor’s 500-stock index lost at least 6 percent at some point during the last two months of the year. What signs suggest that 2006 will play out as those three years — 1991, 1994 and 1996 — did?

Trading volume has shrunk, something that often precedes a price decline, she noted, and several sentiment indicators, including opinion surveys of investment advisers and measures of market volatility, show the sort of complacency that typically occurs near market tops.

Interesting stuff . . .

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UPDATE: November 27, 2006 10:43am

CNBC’s Bob Pisani quotes several unnamed traders who have said that in light of the dollar drop, overseas investors are repatriating some cash, locking in their profits for the year, and eliminating additional currency risk . . . 

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Source:
This Party May End Before It Starts
CONRAD DE AENLLE
NYTimes, November 19, 2006
http://www.nytimes.com/2006/11/19/business/yourmoney/19mark.html

Category: Currency, Investing, Markets, Psychology

The Buck Stops Where?

Category: Currency, Economy, Markets

Morgan Stanley is Bullish on Asian Currencies

Category: Currency, Economy

The Big Mac Index

Category: Currency, Retail

Has the Fed Kept Inflation in Check?

Category: Currency, Federal Reserve, Inflation

Chart of the Week: M1, M2, M3 Money Supply Components

Category: Currency, Federal Reserve

Historical M2 vs M3

Category: Currency, Federal Reserve

Changing Influences on Foreign Markets?

Category: Currency, Markets

Economic, Market Impact Of Hurricane Katrina

Good round up from Dow Jones:

Over a week after making
landfall, the broad economic fallout from Hurricane Katrina continues to
unfold. Economists are downgrading their third quarter growth forecasts for
the U.S. economy and not all think that rebuilding in the wake of the storm
will bring things back in the fourth quarter. Markets have stabilized
however, taking their cue from the price of oil and other refined energy
products, which have been hit by a major international effort to release
emergency energy reserves in an attempt to alleviate a supply crunch.
Estimates of the economic loss from the hurricane exceed $100 billion, with
the Senate’s top Democrat putting it closer to $150 billion.

Here
are some of the main market and economic impacts:

Read More

Category: Commodities, Currency, Economy, Markets

Yuan Roundup

Category: Currency, Financial Press