Tuesday, March 22, 2011

Thoughts

The market could have seriously rolled over, but it didn't.

Overall, I thought the market did well, especially in light of the climb over the previous three days.

Erin Go Broke?

A heads up: The Irish debt market is stinking up the joint and is a tail risk. Since year-end 2010, Irish two-year bonds have risen by 500 basis points. Over the last twelve days, however, those bonds have climbed by 200 basis points.

Gasoline Prices Will Get Worse

From Rich Farr, Boenning & Scattergood's economist:

In February's Retail Sales Report, gasoline took a little more market share of consumer spending. Gasoline as a Percentage of Retail Sales increased from 10.28% of sales in January to 10.33% in February. Unfortunately, it looks like that trend is going to only worsen from here. Average gasoline prices for March are now trending well above February's average. Furthermore, with the political unrest in the Middle East and Libya, the average price for gasoline is quickly approaching its 2008 peak, and unemployment is far worse now than it was in early 2008.

Fed Official Sounding Deficit-Minded

Fisher of the Dallas Fed makes some hawkish comments.

Screwflation Hits the U.K. Middle Class

U.K. CPI is now up 4.4% year over year.

February headline U.K. CPI increased by 0.7% (above forecasts) -- it is now up 4.4% year over year. Not only did energy prices contribute to the large increase but so did higher clothing and utility prices.

Another contagion, that of screwflation, continues to hit the middle classes around the world.

Run, don't walk, to read 'The Seven Immutable Laws of Investing' by Grantham Mayo's James Montier.

No comments: