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GBR Market Wrap: More Signs of the New Normal

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In this Week’s Issue: Sept. 2, 2011

Weekly Snapshot

• Investors rushed into safe-haven Treasuries again; 10-year yield near 2% (WSJ)
• 2-year Greek government bond yields rose above 47% on Friday (Bloomberg)
• U.S. nonfarm payrolls were unchanged in August, unemployment rate held at 9.1% (BLS)
• Brazil’s GDP growth slows 0.8% in 2nd quarter as boom fades (Reuters)
• Brazil unexpectedly slashed its key interest rate to 12% from 12.5% (Reuters)
• Euro area unemployment rate remained unchanged at 10.0% in July 2011 (Eurostat)
• Eurozone inflation remained unchanged at an annualized 2.5% in August (Eurostat)
• China widens reserve ratio for banks to limit inflation (Bloomberg)
• U.S. home prices increased by 3.6% in the second quarter of 2011 (Standard&Poor’s)
• U.S. consumer confidence slumped to 44.5, the weakest since April 2009 (Bloomberg)

Market Barometers

stock market barometer-2011-09-02

fx barometer-2011-0902

Weekly Chart

The employment picture continues to be a major drag for the prospects of a sustainable economic recovery.  The chart below shows a particularly concerning element of the jobs picture: The long-term unemployed (red line).

Duration Unemployment

More Signs of the New Normal

In view of the upcoming U.S. Labor Day, we’ll keep things a bit on the lighter side this week.  No commentary, just a selection of charts indicating the “new normal.” Enjoy!

Ultra-low Rates


Higher Volatility

Volatility Index

Sideways Markets


A Weakening Dollar


End of Debt Super Cycle?

10-year cycle

Best wishes for a happy Labor Day week-end!

Clemens Kownatzki, MBA is an adjunct professor of financial risk management at the Graziadio School of Business and Management, as well as the founder and CEO of FX Investment Strategies, a Registered Investment Advisor. In addition to running his investment advisory firm, he is a contributing author at and He also authored the book, Money Music 101, available on Amazon and Kindle, in addition to publishing the popular investment blog along with a weekly newsletter.Disclaimer

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Ultra-low Rates
Author of the article
Clemens Kownatzki, MBA
Clemens Kownatzki, MBA
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