Future voting members of the Fed’s policy setting committee waved off concerns regarding a declining dollar on Thursday, Nov. 19, suggesting that unless the decline becomes volatile or otherwise erratic, concerns about an inflationary impulse are unwarranted.

In commentary that seems to suggest the dollar’s decline may be a counterbalance to a historically undervalued renminbi (RMB). Dallas Fed President Richard Fisher told Market News International (MNSI) that the declining dollar value was simply one factor out of many the Fed used as an analytical input for its policy setting model.

Fisher told reporters that “a gradually depreciating dollar” would not necessarily add an “enormous inflation impulse”, and that the Fed’s answer to concerns over a weaker dollar was to pay attention to the dollar’s activity. Fisher also mentioned that there are “trade-offs” to be made between the strength of the dollar and deliberately low interest rates existing over a protracted

...

Companies featured in this edition of the newsletter: ACTC, CVM, CHIP, ENZ, HYTM, IWEB, ONEZ, PHC, SIHI, SRCO

Markets continued their strong performance this week in the absence of any major market driving earnings or economic reports, as the broad based buying that characterized the previous week continued and led to gains in all of the major indices. All told, the Dow added 2.5% on the week, gaining 247 points to close at 10,270, up 17.0% on the year. The Nasdaq posted a 2.6% gain on the week, closing at 2,167 to extend its yearly gains to 37.5%, while the S&P 500 and Russell 2000 gained 2.3% and 1.0% respectively, bringing their yearly gains to 21.1% and 17.4%.

Equity markets carried the momentum from the previous week’s session, as the thin economic calendar and lack of significant earnings reports provided little incentive for investors to slow their buying activities.

...

Companies featured in this edition of the newsletter: CUR, CVM, ENZ, IMUC, MBCI, ONEZ, PHC, SVUL

Markets finished in positive territory yet again during this holiday shortened week despite the lack of any significant developments on either the corporate or economic fronts. All told, the Dow gained 164 points to close at 9605, up 1.7% on the week and 9.4% on the year. The Nasdaq gained 3.1% on the week, closing at 2080, up 32% on the year, while the S&P 500 and Russell 2000 gained 2.6% and 4.0% respectively on the week, up 15.4% and 18.8% on the year.

It was a slow week on the corporate side, but there were some healthy signals from the technology sector, as Texas Instruments raised its Q3 outlook, guiding for EPS of between $0.37 and $0.41, up from previous forecasts of $0.29-$0.39. Fed Ex also guided higher, citing cost management and better

...

This week brings the initial batch of third-quarter results. Seven early reporters from the S&P 500 - all of whom have quarters ending in August - will report: Adobe Systems (ADBE), Best Buy (BBY), Discover Financial Services (DFS), FedEx (FDX), Kroger (KR), Oracle (ORCL) and Pall (PLL). In total, we will see results from 20 companies.

So how will the third-quarter look? The Zacks Consensus Estimate calls for S&P 500 earnings of $13.50 per share, a 15.4% decline from a year prior.

Going back to the week's events, the economic calendar will stay busy with inflation, manufacturing and housing data being released.

Tuesday: August Producer Price Index (PPI), August retail sales, September Empire State survey, July business inventories Wednesday: August Consumer Price Index (CPI), August industrial production and capacity utilization, September NAHB housing market index, weekly crude inventories, weekly mortgage applications Thursday: August housing starts

...

Companies featured in this edition of the newsletter: ACTC, CVM, CUR, DKAM, FMTI, ICLK, IMUC, IWEB, OMCM, ONEZ, SIHI, TAGS

Markets took pause from their four week run this week, as some less than encouraging economic reports coupled with profit taking led to slight declines in all of the major indices. All told, the Dow ended the week down 0.5%, surrendering 48 points to close at 9321, bringing its YTD gains to 6.2%. The Nasdaq was off 0.7%, closing at 1985, up a healthy 25.9% on the year, while the S&P 500 and Russell 2000 were down 0.6% and 1.5% respectively, paring their yearly gains to 11.2% and 12.9%.

Disappointing economic data relating to inventories and consumer sentiment soured the mood for much of the week, as worse than expected declines in retail sales, consumer sentiment, and business and wholesale inventories gave investors cause for concern. Retail sales

...

Red ink flows…  Japan suggests diversification for their reserves…  Commodity currencies rebound…  Data galore for the rest of the week… And Now… Today’s Pfennig! Good day… Chuck had a late night down at the ballpark watching the home run derby, so he asked me to take the helm of the Pfennig this morning. I’m going to try to get this one out a bit earlier than I did last Friday, so I’ll get right to it.

The biggest news to hit the markets yesterday was the Treasury Department’s report that the deficit in June totaled $94.3 billion. This monthly deficit pushed the deficit for the fiscal year to over $1 trillion dollars for the first time, and we still have another quarter to go until the fiscal year ends in September. It comes as no surprise to readers that the deficit is above $1 trillion, but what is a bit unnerving is the speed at

...

Monday

Earnings Announcements: Novellus (NVLS)

Tuesday Economic Reports: Core PPI, PPI, Retail Sales

Will this be the month that we finally see inflation take hold? If expectations come true, it very well could be. PPI is anticipated to show an increase of nearly 1%. Core PPI (which excludes food and energy costs) is expected to show an increase of 0.10%. Retail Sales are expected to post a surprising increase. Most reports I have seen show that retailers are still struggling. I don’t expect this report to beat expectations.

Earnings Announcements: Goldman Sachs (GS), Johnson and Johnson (JNJ), Yum Brands (YUM)

Wednesday Economic Reports: Core CPI, CPI

The CPI is expected to show an increase of 0.60%, and Core CPI an increase of 0.10%. If both CPI and PPI meet expectations, we could be in for the start of a long bout of inflation.

Earnings Announcement: Abbott Labs (ABT)

Thursday Economic Report: Philadelphia Fed

If we meet expectations this month with the

...

On Friday, my colleague and friend David Fessler provided you with four inflation hedges to consider. Without question, I agree with all of Dave’s recommendations. I just want to add one more inflation hedge to the mix. It’s an under-the-radar one that nobody’s talking about. But they should be. So let me tell you what it is - art investing. But let me stress why it’s imperative you spread the love around and consider investing in all five inflation hedges, not just one.

“Inflation is coming, inflation is coming.”

The world knows it. Even the guys at the switch - the Fed - can’t deny it.

Last week, Philadelphia Fed President Charles Plosser warned inflation could heat up much sooner than expected.

Here’s the problem. Everyone and their second cousin keep piling into the predictable hedge - investing in gold. The World Gold Council reports investment demand in the first

...

Art Investing: The Inflation Hedge Nobody’s Talking About

by Louis Basenese, Advisory Panelist Senior Analyst, The Oxford Club

On Friday, my colleague and friend David Fessler provided you with four inflation hedges to consider.

Without question, I agree with all of Dave’s recommendations.

I just want to add one more inflation hedge to the mix. It’s an under-the-radar one that nobody’s talking about. But they should be.

So let me tell you what it is - art investing. But let me stress why it’s imperative you spread the love around and consider investing in all five inflation hedges, not just one.

“Inflation is coming, inflation is coming.”

The world knows it. Even the guys at the switch - the Fed - can’t deny it.

Last week, Philadelphia Fed President Charles Plosser warned inflation could heat up much sooner than expected.

Here’s the problem. Everyone and their second cousin keep piling into the

...

Asian stocks declined Tuesday after North Korea test fired two missiles, heightening geopolitical tensions in the region.  The move, coming a day after the communist regime's nuclear test drew widespread criticism, added to investor worries that the recent rally in stocks may be overdone.  The aftershocks reverberated through the markets on Tuesday with neighboring South Korea's Kospi declining more than 2%.  The Nikkei 225 Stock Average in Japan edged 0.4% lower.  Benchmarks in India, China, Hong Kong and Taiwan also declined.   

U.S. markets enter the holiday-shortened week with a number of key economic data that is likely to be of market moving potential.  Troubled automaker General Motor's (NYSE:GM) fate will also be in focus.  Stock futures point to a lower open on the Wall Street.  Dow Jones industrial average futures fell 10, or 0.1%, to 8,250. Standard & Poor's 500 index futures fell 1.40, or 0.2%, to 883.50.

...