Markets are at a critical point

Learn to trade Options with Hari Swaminathan from OptionTiger.com

Markets are at a critical point   The S&P 500 Index (SPX) has quietly dropped close to 4% off its all-time highs. Price action this week has not been very convincing.   Although the long term trend is still bullish, there are several asset classes that are trading in crazy ways.   Oil does not…

Continue Reading →

Lowest weekly jobless claims in 4.5 years – or is it ??

Learn Options trading from Hari Swaminathan from OptionTiger

  This post is not meant to be political, but a political undertone cannot be avoided.  The headlines in the LA Times Business section online proclaimed “New jobless claims fall 30,000” to 4.5 year low at 339,000. As the lowest weekly jobless claims news broke out, the S&P Futures spiked and stayed higher even after…

Continue Reading →

Corporate Debt markets are cheap right now

Learn Options trading from Hari Swaminathan from OptionTiger

If you’re a large market-cap investment-grade company in the US, this is about as good a time to hit the corporate debt markets. Interest rates are the lowest they’ve probably ever been, and the spread between Corporate and Treasury debt is also the lowest. This spread represents the additional risk that investors assume to hold Corporate debt as compared to US Government debt. If you recall, during a brief moment in August 2011, when the debt ceiling deadlock resulted in Standard & Poors lowering the US credit rating, a select few corporates like Microsoft (MSFT) were actually yielding less than Treasuries. Investors were suggesting that MSFT was less of a risk than the US Government 🙂

Continue Reading →

U.S. demographics and its impact on the economy

The Global Economy

One factor that has always played out in America’s favor in the last 100 years is Demographics. The baby-boom generation, immigration, technological prowess, productivity and its entrepreneurial promise has catapulted it into a super-power. But this demographic picture may be shifting now.

Continue Reading →

The U.S – China divergence…Which market is right

The Global Economy

The U.S. markets have been marching up and hit a 4-year high with the S&P 500 touching 1425 this month. On the other hand, the Shanghai Composite is at a 3.5 year low, around 2050. This has to be one of the strangest phenomena in world markets today. On the one hand, China was being touted as the savior of the global economy for the last 4 years since the financial crisis of 2008, the growth engine of the world. On the other hand, its markets are absolutely in the dump. Take a look at this scary chart comparison of the Shanghai Composite and the SPX (S&P 500 index)

Continue Reading →