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In the wake of today’s mixed new home sales report, CalculatedRisk blog’s Bill McBride posted his chart showing new versus existing home sales. The latter continues to far outpace the former, a sign that sales of distressed homes still prevails in the market.
Business Insider interviewed UBS economist Maury Harris on market trends, and Harris shared a chart showing the disappearance of mortgage debt and the rise Federal debt. Harris observes that the lack of mortgage bond supply is forcing investors to shift into the market for Treasury securities. He believes that this dynamic in the bond market could keep Treasury rates from surging in the near-term.
[credit provider=”Maury Harris/Federal Reserve”]
Japanese Corporate Profits Will Likely See A V-Shaped Recovery Thanks To Abe (Cumberland Advisors)
Cumberland’s Bill Witherell says Japanese PM Shinzo Abe’s decision to weaken the Yen — which could move to 1/100 USD in 2013 — will significantly help profits recover. He notes significant increase in foreign investor interest in Japanese equities already underway.
Acquisitions in the energy sector totaled $348 billion, 38% more than last year, according to a Dealogic report quoted by Dow Jones’ David Benoit, who adds the growth was driven by the rapid expansion of shale drilling. It was the industry’s biggest year since at least 2000, Dealogic said.