Wall Street started the week off with a bang, with both the Nasdaq and S&P 500 indexes posting new highs not seen in years. Bullish momentum did, however, scale back after several disappointing earnings and economic reports hit the streets. Meanwhile, investors turned their attention to yesterday’s FOMC rate decision and press conference. In its statement, the Fed said it would continue its $85 billion a month bond buying program, but indicated that it could either increase or decrease the amount it purchases monthly depending on the economic environment [see How Broke Is Your State?].
Below, we outline seven insightful articles circulating around the financial space this week:
- Reinhart And Rogoff’s 90 Percent Fiscal Cliff: It’s Academic When You Count All The Liabilities at Streetwise Professor
Reinhart and Rogoff’s work on the relationship between debt and growth has recently come under scrutiny, after a significant “spreadsheet” error was discovered. In this article, Craig Pirrong discusses his thoughts on the error, highlighting what he thinks are the most important takeaways from the research.
- A Major Bull Case For Grain Markets at Factor
In this piece, Peter Brandt discusses the technicals and fundamentals of the grains market, highlighting the price movements and trends of soybeans, corn and wheat.
- Do Struggle Markets Deserve Respect? at Dynamic Hedge
When it comes to foreign investments, there are several directions investors can choose to take. This piece takes a closer look at the “struggle markets,” a unique subset of emerging markets and economies that are important enough to generate contagion, but not resourceful enough to solve their own problems.
- Have Commodities Bottomed? at Andrew Thrasher: Technical Analysis
In the commodities space, agriculture futures have suffered significant losses this year, with the industry shedding roughly 6% year-to-date. In this article, Andrew Thrasher gives his technical analysis of the PowerShares Multi-Sector Commodity Agriculture ETF (DBA), and gives us his thoughts on the sector.
- Familiar Aromas at Market Anthropology
In this insightful piece, Erik Swarts gives us a broad overview of the markets, highlighting importent trends and movements he has seen among various asset classes .
- The Consequences of Crowding at Above The Market
For the individual trader or investor, crowding has become an even more pressing issue in today’s high frequency market. In this article, Robert Seawright discusses his thoughts on the issue, highlighting several examples seen in the past.
- SPY Trends And Influencers: Monthly Edition April Into May 2013 at Dragonfly Capital
For those wondering what’s in store for the markets this month, Gregory Harmon gives us his thoughts on where various corners of the market may go.
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Disclosure: No positions at time of writing.