Archive for August 10th, 2011

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