Registered Investment Adviser Caleb Lawrence
Despite the continued flattening of the yield curve, and well worn historical precedence that inverted yield curves precede recessions and significant market declines. The major averages enter the final hour with large gains on mixed data.
Existing home sales advanced for a 2nd month in October with a 2% gain to 5.48 million units annualized. That said sales fell for a second month on a year ago basis down .9% in October on regional weakness in the South and Midwest. The median price slipped for a 4th consecutive month down $600 to $247,000, month’s supply dropped to 3.9.
The Chicago Fed National Activity Index or CFNAI gained .48 in October to .65. The 3-month moving average advanced .27 to .28 its first real positive reading in 4-months. This index covers about 85% of total economic activity and continues to show moderate economic growth, much like the Fed’s Beige Book.
The banksters get caught up in yet another market rigging scandal. This time sharing private client data to manipulate the Treasury Bond market for fun and profit, at the expense of their clients of course. The expanded class action lawsuit originated in 2015. I’ll note that the Republicans recently moved to shield the banksters from class actions, go figure. The usual suspects are involved including Goldman Sachs, Morgan Stanley, The Royal Bank of Scotland, BNP Paribas, and UBS, among others, as the firms behind the rigging and privacy violations, which occurred from the beginning of 2007, until mid-2015. Once again lie, cheat, and steal is on parade along with our bought and paid for political representatives who scurry after the banksters to protect them from the consequences of their criminal behavior. If I’m not mistaken we label criminals as habitual after a 3rd felony conviction and they get another 25-years in prison as a result. Yet scandal after scandal, after freaking scandal for the banksters and nobody goes to jail nor do the penalties levied serve to deter them.