Deeper Analysis
Stock Market Declines Associated with Recessions
August 20, 2011
U.S. recessions are inevitably associated with weakening share prices. A recession from December 1969 to January 1970 saw the Dow Jones Industrial Average drop 35.9% from 985 on December 3, 1968 to 631 on May 26, 1970. The next recession occurred between November 1973 and March 1975. The DOW fell 45.1% from 1,052 on January […] More
Foreign Exchange Insights and Next Week
Next Week
August 20, 2011
The highlights of the coming week will be the Jackson Hole Central Banker Symposium starting Thursday and the release of revised U.S. and British GDP figures and preliminary Chinese and euro area purchasing manager survey results. Fed Chairman Bernanke’s address is set for Friday, one day shy of the anniversary of when he prepared markets […] More
Central Bank Watch
Icelandic Rate Hike
August 20, 2011
On August 17, Sedlabanki’s Monetary Policy Committee authorized the first increase of its seven-day collateralized interest rate since an IMF-mandated three percentage point jump to 18% in late October 2008. From March 2009 through February 2010, fifteen ensuing rate cuts had slashed the key rate all the way to 4.25%, where such remained for the […] More
