If you count yourself among the unlucky residents of Southern Florida where Hurricane Irma looks likely to make her continental U.S. landfall, you may want to take notice of a new study just published by Kelly Edmiston of the Federal Reserve Bank of Kansas City which details the devastating toll that hurricanes can take on your hard-earned credit score.
For the first time in two years, the owners of the Dow Jones Industrial Average have changed the benchmark’s divisor, the number used to determine how moves in the share prices of individual Dow components affect the level of the index.
The new divisor is now 0.145233969 from 0.146021281. With the new divisor, a $1 price move in any Dow component will translate to a swing in the level of the Dow between 6.8854 and 6.8483 points.
Oil Drillers have had little to smile about over the past years. Could this trend be about to end? A pattern is in play that highlights a counter trend rally could be near.
Below looks at the Oil Drillers (XOP)/ S&P 500 Ratio over the past couple of years-
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We just hit a new record high.
No, I’m not talking about the stock market. I’m talking about Central Bank balance sheets. While everyone is talking about the Federal Reserve’s proposal to shrink its balance sheet, globally other banks have been cranking up the printing presses.
As a result of this, the G-4 Central Banks balance sheets (Japan, the US, the ECB, and the UK) are closing in on an astounding $20 trillion.
H/T Dimit.
In a front page article, the WSJ takes aim at the "biggest market puzzle" of our times: the bizarre disconnect between growth and inflation, where on one hand government reports of strong, coordinated, global economic growth and tumbling unemployment (at least in the US and Japan) are offset by the complete lack of concurrent reflation. Some examples: