I’ll post the daily Market Report and Market Analysis
after the close. Here’s some news…
SMALLER CORRECTIONS INDICATE TROUIBLE AHEAD (Lance Roberts)
“…there has been an ever DECREASING rate of corrective
actions in the markets over the last couple of years as the Federal Reserve has
been heavily engaged in accommodative monetary interventions. To wit: "There is an interesting phenomenon occurring in the
financial markets that absolutely, positively, will not last indefinitely – the
'Giant Shrinking Correction.'…[A list follows: 2010-17%; 2011-20%; 2012-10%;
2012-9%; 5 “corrections” in 2013 & 2014 between 5% & 4%.]…As a
reminder, this kind of market action is neither normal or healthy longer term
and has only seen near historical major market peaks. Of course, timing is
everything.” Lance Roberts Commentary and charts posted at Advisor perspectives at…http://www.advisorperspectives.com/dshort/guest/Lance-Roberts-140822-Things-to-Ponder.php
MORE ON WELFARE THAN WORKING (Global Economic
Perspectives)
“…about 40% of the country is on some form of
means-tested welfare, up from 35.4% at the end of 2012….Over 50% of the country
gets welfare or some other form of non-means-tested assistance. I estimate
about 56% or so… welfare-takers outnumbered full-time year-round workers by
6,544,000.” – Mike Shedlock. Commentary and analysis at…http://globaleconomicanalysis.blogspot.com/2014/08/40-of-country-on-welfare-obamacare.html
NEW COURSE FOR THE FEDERAL RESERVE (Reuters)
“Pressure is building within the Federal Reserve for officials to move as early as next month to more clearly acknowledge improvements in the U.S. economy and lay the groundwork for the central bank’s first interest rate hike in nearly a decade. According to some U.S. central bankers and their close advisers, signs of economic resilience and growing anxiety about the risks of holding rates too low for too long have set the stage for an intense debate over rewriting their policy statement.”
http://www.reuters.com/article/2014/08/24/us-usa-fed-communications-idUSKBN0GO0DR20140824?feedType=RSS&feedName=businessNews
2014 SIMILAR TO 2000 AND 2007 EXTREMES – THANKS FED
(Hussman Funds)
“…the greatest risk of QE is not the inflation risk that
may or may not emerge, but the financial distortion, overvaluation, and
speculation that is already
baked in the cake and is progressively worsening, in a manner quite similar to
the 2000 and 2007 extremes, though less evident because the cyclical elevation
of profit margins makes prices seem tolerable relative to current earnings. As
I’ve frequently noted, based on equity valuation measures that are most reliably correlated with actual
subsequent stock market returns, stocks are now more than double their
pre-bubble historical norms, and presently suggest that the S&P 500 will be
no higher a decade from now than it is today. We expect the current QE bubble
to unwind no more kindly than the prior bubbles in 2000 and 2007.” – John
Hussman, PhD, Weekly Market Commentary, Hussman Funds at…http://www.hussmanfunds.com/wmc/wmc140825.htm
