Joshua M Brown

Chart o’ the Day: More Sellers Than Buyers

Jon Krinsky at MKM Partners mentions the fact that, to some extent, the S&P 500 has been correcting through time over the last six months – but perhaps that may not be good enough. In the meantime, although we’re still hanging in there above the (now-flattening) simple 200-day moving average, US large cap stocks are…

Surprise! (i’m sorry)

Two ways to look at the above chart via HSBC Global Research. First, you can say “Uh oh, all the surprises in US economic data are rolling over and coming in negative!” Or, you could say, “Expectations were too high, and now they’re troughing just where they did in years past, setting us up for…

The S&P 500 vs Recent Tightening Cycles

The Merrill Lynch RIC team sees a slow and low hiking cycle on the horizon, with a Fed Funds rate still under 2% by the end of 2016. Below, some data on how stocks have behaved before and during recent tightening cycles. You’ll note that historically it’s the six months leading into the hike where equities had been…

QOTD: The Price of Liquidity

James Saft doesn’t miss the old days, when liquidity had no cost and thus was used and abused carelessly. He points to the abnormal levels of liquidity and calls them a “subsidy” benefiting only some financial intermediaries while putting the public at greater risk. It’s an interesting argument. Hit the link above to read more.