Business

Lord Rothschild has issued a stark warning to investors, saying that 2016 is likely to be a very difficult year for the world economy.  In his letter to investors, Rothschild warns, “not surprisingly, market conditions have deteriorated further…So much so that the wind is certainly not behind us; indeed we may well be in the eye of a storm.” On this basis, Rothschild highlights a “daunting litany of problems,” warning those who are optimistically sanguine about the US economy that “2016 is likely to turn out to be more difficult than the second half of 2015.” Lord Rothschild Letter to Inves

"The Fed has consistently missed every recession and every depression" says Wedbush's Ian Winer, as he explains to BNN why watching the bond market and not this week's FOMC "dot plot" is more insightful, "expecting the economy to be mired in modest growth with at most 2 rate hikes this year."

Three weeks ago, when looking at the incoming Q4 results, we were stunned by an unprecedented divergence: that of GAAP and non-GAAP earnings. We showed this difference as follows:

... and noted that while on a non-GAAP basis, the S&P's trailing P/E is a relatively rich 16.5x (over 17x as of today), it was the GAAP P/E that was troubling, because at just 91.5 in actual S&P EPS, this implies that the GAAP P/E of the overall market is now a near-record 22x.

We showed the delta between GAAP and non-GAAP as follows:

What could go wrong?

Today was all about the 200-day moving average for the S&P 500...2019.40 was all that mattered...

On Sunday, millions of Brazilians took to the streets to call for the ouster of President Dilma Rousseff, who is thought to have cooked the fiscal books in 2014.

She’s not yet implicated (directly anyway) in the long-running Carwash probe, but some think that may change soon as the investigation seems to get closer and closer to her officer with each passing week.

But it’s not just corruption that Brazilians are fed up with.