Deeper Analysis
Bear Markets Typically Include Big Daily Gains
August 10, 2011
During a bear run, it is much more common to experience out-sized daily rises in share prices such as occurred on August 9 than during normal periods of sideways or upward sloping trends. During the collapse of 2008-09, there were numerous such days. The brunt of that bear market was compressed between the collapse of […] More
Central Bank Watch
Norwegian Monetary Policy Requires a Balancing Act
August 10, 2011
The Norges Bank, Norway’s central bank, did not raise its policy interest rate of 2.25% even though that level is “low” and the last full review in June projected the key rate would lie between 2.25% and 3.25% between then and October. The explanation for today’s decision is contained in a statement that speaks of […] More
New Overnight Developments Abroad - Daily Update
Swiss Monetary Authorities Ramp Up Actions to Stop Franc’s Rise
August 10, 2011
Share prices in Asia and Europe rose, relieved by the FOMC’s prediction of an exceptionally low fed funds rate until mid-2013. Apparently investors had imagined a sooner tightening than I had. The Fed statement also reiterated that principal on maturing securities acquired in QE1 and QE2 would be reinvested. The Swiss National Bank, which last […] More
