Five Things You Need to Know: Where's the Inflation?, Countrywide Slowdown, China Does Europe, Big Brother is Watching, Meet the Mets!
What you need to know (and what it means)!
Minyanville's Five Things You Need to Know to stay ahead of the pack on Wall Street:
1. Where's the Inflation? Exactly.
The Consumer Price Index increased 0.2 percent in August, in-line with expectations, the Bureau of Labor Statistics reported today.
- August's 0.2% gain follows a 0.4% gain in July.
- Prices excluding food and energy rose 0.2%, the same as July.
- Energy prices rose a mere 0.3% in August, after a 2.9% rise in July.
- Owners' Equivalent Rent, which makes up 23.4% of CPI, was also lower than most expectations at 0.3% versus 0.4% expected.
- Treasury's were bid higher after the release.
- The US Dollar Index (DX/Y) was higher as well.
- So, where's the inflation? That's precisely our point.
2. Countrywide (slowdown, that is)
Countrywide Financial (CFC) said Thursday that mortgage loan fundings in August fell 24 percent year-over-year to $40 billion, due to the slowdown in the housing market.
- Average daily mortgage loan application activity for the month fell 17 percent to $2.6 billion.
- More worrisome, the mortgage loan pipeline totaled $64 billion at Aug. 31, down from $78 billion a year earlier. That's an 18% slide.
- Their mortgage loan servicing portfolio totaled $1.2 trillion at month-end, up 20 percent from the prior-year period.
- The $40 billion was an increase over July, however, when it funded $36 billion.
- Mortgage loans for consumers buying homes fell to $19 billion in August, from $25 billion in August 2005.
3. China Does Europe
The European Union replaced the United States as China's biggest trading partner last year, according to Xinhua's China View News.
- The EU has replaced the United States as China's biggest trading partner last year, according to Xu Kuangding, Chairman of the China Federation of Industrial Economics (CFIE).
- Xu's remarks came in a speech delivered at the second Hamburg Summit -- "China meets Europe."
- Xu said Sino-European trade, with a volume of 217.3 billion U.S. dollars, has exceeded the Sino-U.S. trade volume by some 5.7 billion dollars.
- European companies such as Airbus, Siemens, Nokia and Volkswagen, made the EU the fourth largest investor in China and China's most important supplier of technology.
Sure, Europe may have replaced us as China's most important supplier of technology, but I'd like to see them try and replace us as China's most important supplier of these:
4. Big Brother is Watching
The resignation of Hewlett-Packard's Chairwoman Patricia Dunn following an HP board of directors spying scandal may have directors across the country questioning whether they should trust their chairs.
- With increasing regularity, companies are relying on surveillance to monitor everyone in the firm, from cubicle to corner office to boardroom, according to Forbes.
- More than 75% of employers monitor their workers' Web site connections, according to a survey by the American Management Association and ePolicy Institute.
- About half of all workplaces store and review computer files.
- And 36% track keystrokes and the time spent at the keyboard.
- In this age of high-tech surveillance, how do you protect your sensitive conversations and computer data from corporate snoops?
- Below are some Minyanville privacy tips:
- Always look over your shoulder to make sure no one is standing over it .
- Most "experts" say you should use a password that is difficult for others to guess. But that is exactly what hackers and surveillance experts are expecting you to do. Instead, use a password that is easy to guess.
- Shred all documents as soon as they arrive and before they are opened. Remember, if you can see it, a surveillance expert can see it.
5. Meet the Mets!
Yesterday afternoon we learned that the future of the market hinges on one thing: The New York Mets:
Your comments about deflation and the direction of the market are very compelling, but did you ever notice that the years in which the NY Mets played in the World Series proved to be important turning points in the market?
If you had sold the market on Friday in the first week of November after the NY Mets played in the World Series, you would have very impressive results:
1969 – NY Mets vs. Baltimore Orioles
Sold on 11/7/69 Closing Dow 860.48, Market high 871.77, Market Low 627.44 on 5/29/70 – potential 27% gain, tiny draw down
1973 – NY Mets vs. Oakland A's
Sold on 11/3/73 Closing Dow 935.28 , Market high 971.25, Market Low 573.22 on 10/4/74 – potential 38% gain, 4% drawdown
1986 – NY Mets vs. Boston Red Sox
(This one required excellent money management rules )
Sold on 11/7/86 Closing Dow 1774.18, Market high 2746 in Aug '87, Still the Market did make a low @ low 1616 on 10/87 – 8.8% gain, whopping draw down if no money mgmt.
2006? It sure looks like the Mets are going to make it into the world series – can't wait.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter