"Tailwinds"?

I visit a number of financial sites, both mainstream and not-so-mainstream, and one of the mainstream ones commonly highlights videos on the side of the article that may be of interest.  I have from time-to-time clicked on some and did so on one yesterday.  As usual, it started with a 30 second financially oriented commercial.

I will not name any names but in this commercial a rather genuine sounding woman is speaking to the viewer and noting how stocks are still a good value investment, especially in Europe, which is benefiting from the strengthening U.S. dollar.  Indeed, she referred to this currency variance as a "tailwind" for European stocks, "especially Germany."  The whole piece is to get you to put your hard-earned money with these investing intellectuals so they can invest wisely in German and other European stocks.

Now I do not know when this particular ad was first aired or when it was recorded, but I am really scratching where the sun does not shine and wondering why they would still be running it.  It undoubtedly is achieving the opposite of what it was intended to achieve, at least with anyone who is conscious and has a pulse.  It is certainly not promoting this company well at the moment.  You see EuroStoxx 600 is down nearly 6% this week and Germany's DAX has had a slight one week slip of 7.4%. 

But this is not the worst of it.  The DAX peaked way back in early April and is down 18% since the peak.  I know this ad has been running for a while, weeks at least.  So two questions, why would you want to invest with a company that was recommending investing in Germany during a prolonged stock decline in a market that was highly overvalued to begin with?  And why would you invest with a company stupid enough to run this ad during months while the German market is plunging?

Now I could see perhaps selling the story that the strongest economy in Europe has had a market correction leading to an investing opportunity (mind you, I am not saying this is indeed the case as I think Europe and Germany have a long way down to go).  At least such a line in the present environment would be plausible, but this tailwind crap is not winning any converts today.

Fed Up with Fed Up Expectations

I have been saying for months, since April to be specific, that the Fed ain't raisin' no rates!  They want to do so, they should do so, they should have done so a long, long time ago, but they are not going there this year and are more likely to do more QE than raise rates.  It's the economy stupid, and it is starting to show its dark underside for all to see.

Mish earlier this week at his site noted expectations were for a 1/8 point increase in September followed by another 1/8 point in December.  Well, after the past couple of days that old forecast has been revisited just a tad and now calls for there to be no increase in September and 1/8 point in December.  We will see.

http://globaleconomicanalysis.blogspot.com/2015/08/yield-curve-flattens-in-recessionary.html

You Stand Corrected

Well, actually, the markets stand corrected.  The Dow, Nasdaq and Russell 2000 all ended the day in correction territory today.  Who could have seen that coming . . .