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The third quarter came to an end on Friday with the S&P 500 and gold closing near their highs of the year.While most gold analysts see the yellow metal only heading higher, stock market strategists remain mixed.
Meanwhile, Spain and Greece came back into the forefront as talks of austerity sent protestors into the streets.
A huge downward revision to Q2 GDP and a stunning drop in durable goods orders also freaked people out.
And Wall Street’s best economists and analysts had plenty to say about all of it.
'Despite those economic conditions, confidence is at a really high level. You look at a 1% government bond, the 5-year note. You've got a 3% corporate bond. Those yields don't get much lower. That's a vote of confidence. Look at the stock market, sell around 17 times earnings. That's not exuberant; that's just about where it ought to be. So it suggests a good level of confidence at a level that's short of speculation.'
'Without the first step (the single supervisory mechanism (SSM) that Germany is now trying to emasculate), the next step -- the ESM as bank recapitalisation fund and proto-bank resolution fund, cannot take place. This is extremely serious. National supervisors in the core EA nations have, under the guise of prudential regulation, imposed de facto capital controls on interbank flows from the core to the periphery, including flows between subsidiaries of the same cross-border bank and between subsidiaries and parent.'
'Quality vs. price: Apple is now selling less or equal for more money.' Kass argues that competitors have caught up with Apple in terms of technology. As such, they are now only offering a similar or worse product at a premium price. Kass doesn't think this is sustainable.
'On the seven measures we track, gold would need to hit USD 2,390/oz to reduce the purchasing power of an average G7 consumer to its lowest level on record. Moreover the gold price would need to hit USD 2,960/oz to represent an excessive valuation versus the S&P 500.'
'The breakout above the year-long downtrend line completes the correction within the longer-term uptrend and targets resistances at $1800 and $1925. But, the secular bull market for gold points to a stronger rally to $2050-2300 and up to $3000 longer-term. The top of the rising channel from mid 2005 is near $2375 and reaches the $3000 area by early 2014.'
'Spanish and Greek protests have made headlines and are a reminder that all the ECB's money won't make recession go away and until a growth strategy is implemented by Europe's politicians, this crisis can't be brought to a satisfactory end.'
'Spain is not going to destroy the global financial system. That is almost as preposterous as commentators claiming that Charlie Plosser just caused the spoo to drop 2 per cent. Pulllease!! The market is going to rightly torture all the 'johnny come lately' types who join risk-on party late. That is all that is going on here. Enjoy the read below. Good luck trading.'
'Although I agree that Ben Bernanke's ruinous polices will ultimately take us down the road to rapid inflation, I still think we will travel there via another visit of outright deflation fear.
I expect US inflation expectations as measured by the bond market to decline and fall into line with 5-year consumer expectations as measured in the Michigan Survey.'
'Hollande was not elected by his base to pursue austerity and reforms, but rather to boost growth and hiring in the public sector,' writes Roubini. Talks of austerity is causing unions to become restless and riots could begin among the poor and affected minorities.
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