The Bureau of Labor Statistics reported 204,000 new November jobs and everybody said wow, the US economy must be doing better then we thought. Similarly, the Bureau of Economic Analysis reported that the US Gross Domestic Product grew by 2.8 percent in the September quarter. If you only used government data, the impression is that maybe the economy is indeed getting better and we can grow our way out of the current no growth swamp. Read More
TrimTabs’ Charles Biderman was on CNBC Monday morning with Rick Santelli discussing stock and bond inflows.
TrimTabs’ Charles Biderman was on CNBC Thursday discussing where investors are putting their money after breaking down his data. “A huge amount went in [to equities] starting on Thursday when it became apparent that there would be a deal,” Biderman said. “It was actually a whopping $17 billion went into US equity mutual funds and exchange traded funds [ETFs] combined. That’s a huge amount of money.”
To see the entire video, click here.
A key belief of mine is that inherent in the nature of government is that governments are not capable of effectively providing services. And by effectively, I mean in terms of dollars and hours. Yet, the biggest of the Big Lies, and one apparently believed by most Americans, is that government can effectively provide services. Read More
The idiocy in Washington on both sides is almost too tough to watch. First off, there is no government shutdown. Yes, about 500,000 government workers are on furlough and not getting paid right now. But over 20 million direct and indirect government workers are still on the job and getting paid! So how can a 2.5 percent, yes 2.5 percent, temporary reduction in workforce be called a shutdown?
In my last video I opined that the secret of my success has been an ability to accurately describe the conditions of the financial markets and economy exactly the way they are and exactly the way they are not. Why is that useful? Read More
The secret of my success, in my opinion, has been my ability to accurately describe parts of the market and economy exactly the way they are and exactly the way they are not. I say power to make change starts with being grounded in what is actually happening right now. Not knowing what is really so and just guessing will make any existing problem much worse. If certainty creates power, uncertainty destroys power. Read More
In my last video before taking some time off I said that I expected a weak August jobs report and an imploding housing market to postpone the start of taper time. Well, the August jobs report was weaker than expected and mortgage bankers today reported that new mortgage applications have plunged to levels not seen since the 2008 low. Regardless of the weakness, the bond market apparently still believes that even if the Fed might not start tapering this month, tapering will start before year end. Read More
TrimTabs’ Charles Biderman joined CNBC’s Rick Santelli to track fund flows Tuesday.
I expect the Bureau of Labor Statistics on September 6 will claim that much less than 100,000 new jobs were created in August; maybe as few as 25,000. And if the Fed is telling the truth that whether or not to taper is dependent on economic data, then a weak job market on top of slowing real estate says to me there will be no tapering anytime soon. Read More
Most who follow markets now knows that the US Federal Reserve wants to “Taper” the amount of new money printed daily. But nobody seems to know when. And the real question is: what does that mean to the markets if the Fed does or doesn’t taper? Read More
The most dangerous people are those with power who are not as smart as they think they are. Particularly dangerous are those who think they have the answer to our problems, but unfortunately are not smart enough to realize that they have no clue. Read More
The stock market continues to move upward. The market value of all US stocks is $22 trillion, a whopping $13 trillion increase from the March 2009 low and roughly equal to the all-time peak reached in October 2007. The more the stock market has gone up the more investors, economists and financial commentators, all firmly believe that the U.S. economy is on the verge of rapid growth. Read More
I have been playing the financial markets for over 40 years. Successful investors all share a common trait: They each have found an edge that enables them to outperform. Historically, before the internet, there were mainly two “edges” available to investors. The first is to know more about a company, industry or product than what the market knows. The second is to be the first to get the news, also known as trading on insider information. Read More
TrimTabs’ Charles Biderman was on Bloomberg Radio this week discussing tracking US Equities and his overall outlook of the Economy. Click Here to listen to his interview.
Since Federal Reserve Chairman Ben Bernanke suggested on May 22, 2013 that the Federal Reserve (the Fed) could begin tapering its bond purchases, the stock market has stumbled, and bond yields have spiked. According to J.P. Morgan and Deutsche Bank estimates, the central banks of G7 nations have pumped $10 trillion of liquidity into the financial system since 2008. Years of cheap money have made global investors addicted to it. While most investors agree that quantitative easing (QE) must stop in some point, opinions are divided on whether a smooth exit is possible. Read More
Stock prices are near record highs despite the fact that the U.S. economy is barely growing. So it is highly unlikely stock prices will keep going up without the tail wind of massive money printing. Which means this stock market bubble will pop when the Fed announces that it will start slowing the new money game. Read More
Charles Biderman, chief executive officer of TrimTabs Investment Research Inc., says “companies have been reducing the amount of money they are spending on dividends compared to buybacks.” Biderman talks with Bloomberg’s Tom Keene on Bloomberg Radio’s “Bloomberg Surveillance.” (Source: Bloomberg)