Bonds and Stocks
Another Depressing Day for Stocks
October 27, 2008
Another 2.4% decline of the Dow Jones Industrial Average today left the per annum advance from December 13, 1961 at 5.27%. U.S. consumer price inflation over that long-run period of nearly 47 years averaged 4.34% per annum, so the Dow’s real rate of incline was only 0.89% per annum. Investing for the long run is […] More
Currency Markets in the News
German IFO Suggests Sharp, Not Mild, Economic Slump
October 27, 2008
Few economies have experienced the transformation from days of plenty to days of great difficulty more dramatically than Germany, and that shift is documented in the monthly IFO index for the climate in Germany trade and industry. The index peaked last year in May and fell additionally when the banking crisis surfaced in August 2007. […] More
Currency Markets in the News
The Yen, Nikkei, and G7
October 27, 2008
The yen has advanced to levels where Japanese companies may seriously consider relocating production abroad. The record dollar/yen low of 79.85 on April 19, 1995, gives a misleading sense of how close Japan’s currency is currently to unchartered waters. In 1995, which saw Japan’s economy slide into recession, the yen was stronger than 90 per […] More
Currency Markets in the News
G-7 Statements on Forex: Evolution of Currency Policy Since 9/11/01
October 27, 2008
10/27/08 Conference Call “We reaffirm our shared interest in a strong and stable international financial system. We are concerned about the recent excessive volatility in the exchange rate of the yen and its possible adverse implications for economic and financial stability. We continue to monitor markets closely, and cooperate as appropriate.” Afterward, the French Finance […] More
Currency Markets in the News
G7 Speaks Out Against the Yen
October 27, 2008
I do not recall the last time, if ever, that G7 finance ministers and central bankers, the designated body for coordinating currency market policy, issued a statement concerning a particular currency that did not follow one of the group’s three scheduled annual meetings. The G7 has not been in the habit of making idle threats. […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: G7 Protests Excessive Yen Strength
October 27, 2008
Stocks plunged further in Asia. The Nikkei fell 6.4% to its lowest level since October 1982. Stocks dropped b 12.3% in the Philippines, 12.2% in Hong Kong, 9.5% in Thailand, 8.3% in Singapore, 7.1% in China, 4.6% in Vietnam, and 3.6% in both India and Malaysia. Stocks in Europe are down 5.9% in France, 5.4% […] More
Currency Markets in the News
Key Data This Week
October 27, 2008
Japanese corporate goods prices fell 0.4% in September, cutting on-year CGP inflation to 0.1% from 1.4% in August. As always, Japan will release many indicators in the final week of the month, including retail sales, industrial production, unemployment, consumer prices, household spending, housing starts, construction orders, the purchasing managers index, and the Shoko Chukin survey […] More
