We just saw 3 years of gains evaporate in 6 days in this major market. Is this a prelude to global turmoil?
3 Years Evaporates In 6 Days
May 22 (King World News) – Here is what Peter Boockvar had to say as the world awaits the next round of monetary madness: After giving back 3 years of monetary suppression in 6 trading days, Italian yields are lower today. The 2 yr yield is down by 7 bps as is the 10 yr yield. Italy certainly has its own political dynamic and a debt to GDP ratio of 130% at the same time the new regime wants to bust out the deficit. But the dramatic reaction in its bonds, the 3rd largest bond market in the world, in just a week of trading in the face of everything the ECB has done should be a wake up call of maybe what is to come as we get closer to the end of ECB QE this year and NIRP next year…
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Also of importance…
From legend Art Cashin: A Very Successful Earnings Season Winds Down – We are coming to the end of the spring earnings season. It has been outstanding.
Here’s how my friend and fellow market veteran, Jim Brown, over at Option Investor described it:
Of the 465 S&P companies that have reported earnings, 78.9% have beaten estimates. That is a record since Factset began keeping records. Q1 earnings growth stands at 26.2% with only 35 S&P companies left to report. Revenue has risen 8.2% and 75.2% of companies have beaten estimates. There have been 48 guidance warnings for Q2 and 35 companies have raised guidance. The current forward PE is 16.6. There are 22 S&P companies reporting this week.
This is retail week for earnings. Highlights are AZO, KSS, TJX, LB, LOW, TGT, BBY, GPS, ROST and FL. There are a few others but they are the smaller chains most people would not recognize. Hewlett Packard Enterprise (HPE) reports on Tuesday along with Intuit and Ctrip.com. Medtronic, McKesson and AutoDesk report on Thursday.
A record quarter. Doesn’t get much better than that.
There’s Something Out There, History Suggests – Since 1850, every decade has seen at least one recession. Some have seen two or three, or even four. The decades of 1890-1900 and 1920-1930 both contained four separate recessions.
Since 2010, we have not yet had a recession. Will we get through 2020 without one hitting? History suggests otherwise, but anything is possible.
ALSO RELEASED: BULL SIGNAL: James Turk Says Massive Silver Base Preparing To Explode Higher CLICK HERE TO READ.
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