The Wall Street Journal – ‘Buy the Dip’ Is Becoming a Pavlovian Reflex Mr. Chan notes that five standard-deviation stock declines are happening more often. There have been three such declines in U.S. stock market in less than a year, a frequency nearly 20 times higher than the long-term average. One struck following the “Brexit”… Continue reading How ‘Buy-The-Dip’ Became A Learned Response Function
The Upshot (NYT Blog) – Angry Over Zillow’s Home Prices? A Prize Is Offered for Improving Them It’s one of the oldest tricks in an internet company’s playbook. Concoct a tool that gives the public new statistics on something — the quality of a restaurant or a toaster, say. Then watch visitors flock to the… Continue reading More On Zillow’s Zestimate
CNBC – Nobel winner Robert Shiller: Stay in the market because it ‘could go up 50 percent from here’ Nobel Prize-winning economist Robert Shiller believes investors should continue to own stocks because the bull market may continue for years. CNBC’s Mike Santoli spoke with Shiller in an exclusive interview for CNBC PRO. Santoli asked Shiller… Continue reading Robert Shiller On The Markets
Bloomberg View – Mohamed A. El-Erian: How Central Bankers Get Their Communication Timing Wrong Comments by the president of the St. Louis Fed encouraged the markets’ belief that the Fed is their BFF. By suggesting that the Fed may need to be more stimulative than it has signaled recently, the comments spoke directly to many… Continue reading Fed Communication And The Markets
The Financial Times – Reminder: A “normalised” Fed balance sheet won’t be normal-sized Even before the Fed addresses the tougher questions — how it wants to control interest rates, and who it wants to trade with — the balance sheet should probably be around $2.1tn, Logan says. (For context, the Fed currently owns about $2.5tn of… Continue reading More On The Fed’s Inflated Balance Sheet
The Financial Times – Why investors downplay US debt binge risks Outstanding US corporate debt has swelled more than 275 per cent over the past two decades to $8.5tn, with credit ratings broadly deteriorating over that period. In 1996, roughly two-thirds of groups rated by S&P Global held an investment-grade rating. That has fallen to… Continue reading Corporate Debt
Business Insider – A definitive breakdown of the gloomy state on Wall Street Don’t be fooled. While Wall Street bank revenues appeared to bounce back in the first quarter of 2017, with banks posting strong results in fixed income trading in particular, industry-wide revenues were still down on the same period from 2012 to 2015. According to… Continue reading Bank Revenues
Bloomberg Business – China Hit by First Moody’s Downgrade Since 1989 on Debt Risk Moody’s Investors Service cut its rating on China’s debt for the first time since 1989, challenging the view that the nation’s leadership will be able to rein in leverage while maintaining the pace of economic growth. Stocks and the yuan slipped in… Continue reading Moody’s Downgrades China
Business Insider – Australian who runs $37 billion investment fund calls Uber a ‘ponzi scheme,’ claims it’ll be broke in a decade Hamish Douglass, the co-founder of the Magellan Financial Group with more than $37 billion USD under management, thinks ride share service Uber has a less than 1% chance of surviving the next decade. “It’s… Continue reading Magellan Financial Group Founder Calls Uber A “Ponzi Scheme”
OPEN Net Positions – Bitcoin Goes Vertical In this Net Positions, Peter Forbes discusses Bitcoin’s 130% rise since its March 25 low at $936. Comment Without a complete explanation for the latest surge in Bitcoin, we’re mostly left watching the markets try to grasp a developing technology. Ultimately we think that enthusiasm for the blockchain technology will… Continue reading Bitcoin Goes Vertical
The Wall Street Journal – The Rise of the Amateur Oil Sleuths Upstarts cropping up to feed growing appetite for clues on where crude prices will go On a recent Sunday evening, Samir Madani had dinner with his family in suburban Stockholm, did the dishes and put his two children to bed. Then he opened his laptop and… Continue reading Crude/Energy ETF Flows