Succinct summation of week’s events:
Positives
1)Oct payrolls surprise big to the upside 2)Fed lights another fire under asset prices but are we really wealthier as a result? 3)Emerging markets continue to rally as investors seek non $ assets 4)Oct auto sales rise to best since Sept ’08 ex clunkers 5)ISM services and mfr’g indices both above forecasts 6)RBA and RBI raise rates to cool inflation pressures 7)Fed to allow healthy banks pay dividends.
Negatives
1)Huge printing of money has turned our central bank into a 3rd world one 2)Asset priced induced wealth effect is an illusion if a debased currency and higher inflation is the side effect 3)Deeper the Fed gets, the more difficult it will be to reverse 4)Commodity inflation as measured by CRB index rises to 2 year high 5)Ireland, Portugal and Greece financial concerns continue to grow 6)German Sept factory orders fall sharply 7)Sept Pending Home Sales unexpectedly fall.
