Markman Capital Insight

California drought is keeping a lid on interest rates

May 22nd, 2015

You may have heard that California is experiencing a historic drought -- the worst in at least 200 years by some measures. While this might seem like a problem isolated to California, the TIS Group observed that there are some implications that you may not have considered, and could have much broader impact.The state hydrological reserve is at only...

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How to make sense of surging stock indexes and Wall Street pessimism

May 22nd, 2015

The big event this week has been the release of the April 29 Fed meeting minutes.  The April statement acknowledged the rollover in Q1 earnings data which has since only worsened, with Wall Street estimates for Q1 GDP falling below -1%. The minutes were  scoured for clues as to how confident the Fed is that the slowdown is merely temporary.Friday's...

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Another painful credit crisis may lie ahead

May 22nd, 2015

The slowdown in retail sales growth has been a big surprise this spring, as lower gasoline pump prices were expected to boost spending. What's going on?Our new friends at TIS Group have a fascinating if scary answer: The credit cycle is breaking down as consumers sense that the economy is slipping a gear and don't want to over-leverage themselves.This...

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Why robust labor data means big profits for banks

May 22nd, 2015

The April Job Opening and Labor Turnover Survey continue to add support to the idea the weak March payroll report was an anomaly and that the job market is rapidly moving towards full employment.The quit rate rose to 2%, suggesting the balance of power in the labor market is finally shifting from employers to employees. This also suggests wages, a powerful...

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How China manufactured a stock market rally in the nick of time

May 19th, 2015

We've been writing about the advance of Chinese stocks of late, and wow -- look at them go. The chart above records their moonshot this month, up 18.7% with upside gaps many days that show a lack of sellers. For sure, I should have recommended that we enter these stocks via an instrument like iShares China (FXI) before now, having been a gawking bystander....

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Why Tesla's unbridled ambition is a really big deal

May 19th, 2015

One of my key thoughts this year is that increasing economic competitiveness of solar panels relative to fossil fuels will result in a surge of new installations by private homeowners and utilities.A similar dynamic is underway in complementary battery technology. Not only are these lithium-ion cells used in electric cars, but they are necessary for...

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Teva's bid for Mylan will get ugly

May 19th, 2015

The melee of the molecules continues as Teva Pharmaceuticals (TEVA) pressed its unsolicited offer for generic drug maker Mylan (MYL).Teva is quite the avid pursuer, as it just closed its purchase of Auspex Pharmaceuticals (ASPX) in March to get access to its portfolio of central nervous system treatments.Mylan is playing harder to get, however, because...

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7 reasons you should invest in animal medicine

May 19th, 2015

7 Incredible reasons you should be investing in animal medicines Pharmaceuticals giant Pfizer(PFE) has been the standard bearer of the drug development industry for decades. The company has been around over a century and a half, and is now valued at over $214 billion.If you feel like you have missed out on the past 150 years of upside, well, there's...

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