In our "WTF Chart of the day" from last Friday, we showed something stunning: European junk bonds yields were the same, and in some cases lower, than comparable-maturity 10Y US Treasurys.
In other words, the distortion unleashed by Mario Draghi's CSPP, or corporate bond buying program unveiled last March, has made European junk bonds "safer" than US government-issued paper.
Authored by Bonner & Partners' Bill Bonner, annotated by Acting-Man's Pater Tenebrarum,
Fools and Rascals
And it’s time, time, time
And it’s time, time, time
It’s time, time, time that you love
And it’s time, time, time…
– Tom Waits
While not quite as enjoyable for the average joe as consumer prices deflation, Producer Prices fell 0.1% MoM in July - the first 'deflationary impulse' since August 2016.
Both goods and services prices fell - with services the biggest driver (which is odd since that's where all the job growth has been)...
Via Dana Lyons' Tumblr,
A key global equity index is testing potentially major resistance.
Unlike in recent years when the U.S. market dominated, stocks around the globe have been on fire this year. Just yesterday, we mentioned the latest great looking breakout underway in the South African stock market. Of course, with all of these individual countries exhibiting strength this year, it stands to reason that the broader indices would also be performing well. One such index is The Global Dow Index (GDOW).
Having tired of picking on Democrats for ruining his Obamacare repeal plans, Trump is increasingly focusing on his own party in general, and Senate majority leader, Mitch McConnell in particular.