Bloomberg.com – What Should the BOJ Do About Its Towering ETF Pile? Nothing BOJ now owns about two-thirds of the nation’s ETF market ‘They don’t have to sell,’ says S&P Dow Jones Indices CEO Here’s something the Bank of Japan could do as pressure builds to address its towering pile of equity holdings. Nothing. Sounds… Continue reading Dealing With The BOJ’s ETF Holdings
Alpha Architect – How are ETFs Affecting the Stock Market: Is There a Dark Side to ETFs? We propose and test two hypotheses. First, we posit that as ETFs become larger holders of a firm’s shares, trading costs for the underlying securities will increase. This increase in trading costs is associated with a decrease in… Continue reading The Drawbacks Of ETFs
Janus – Bill Gross: Brainteasers Well, growth is productivity dependent, and the experts are in a tizzy trying to explain why productivity in the last five years has averaged only .5% versus a prior pre-Lehman “old normal” of 2%+. Fed Chair Janet Yellen, speaking on April 10th, said that no one really knows the answer, which… Continue reading Bill Gross Speaks
The Wall Street Journal – Stock Analysts’ Biases Are Showing, a Study Finds Male stock analysts tend to write more favorably about public companies headed by men than about companies led by women Turns out birds of a feather flock together on Wall Street, too: Male stock analysts tend to write more favorably about public companies… Continue reading Wall Street’s Gender Bias
Bloomberg.com – Guggenheim’s Minerd Says `Significant Correction’ Is Coming Expect a “significant correction” in U.S. stocks as disappointment sets in over President Donald Trump’s ability to enact policies and concerns rise over risks in foreign relations, according to Guggenheim Partners’ Scott Minerd. “I’m thinking we will have a significant correction in the summer or early in… Continue reading Scott Minderd Sees A Significant Correction
OPEN Charts of the Week Topics Covered This Week Include: Commitments of Traders Update/Analysis – New Format Now Available! Q1 Earnings Season Begins This Week Q1 Earnings Season Begins This Week – 2 High Duration More Bond Bears Bonds and Equities Disagreeing on Pace of Growth Bonds and Equities Disagreeing on Pace of Growth – 2 High… Continue reading Charts of the Week
Comment Later today we will be switching to a new website. You should notice a simpler, cleaner look that is easier to navigate. It will also optimize the view for the device and browser you are using. Once this changeover is complete expect changes in several of our products starting with Charts of the Week, the Commitments… Continue reading New Website And Upcoming Format Changes
The Financial Times – Duration bet is back in favour for bond investors Duration of porfolios extended as fears for growth and inflation ease Duration, a measure of how long it takes to recoup an investment in a bond as well as its sensitivity to interest rate movements, on the $43tnBloomberg Barclays global aggregate index shot… Continue reading High Duration
Financial Times – US small-cap stocks: the frontline of a wild Trump trade Between election day and the end of 2016, the Russell 2000 — the benchmark for small-cap shares — soared 13.6 per cent, dwarfing gains for the S&P 500. With the proposed tax cuts nowhere in sight, the rally has begun to slowly… Continue reading U.S. Small Cap Equities and the Reflation Trade Unwind
Bloomberg – How the Currency Market Learned to Get Over Its ‘Yuan’ Big Fear Memories of devaluation shock fade as stability takes hold It was supposed to be a year which set the U.S. and China on a collision course over their respective currencies. Instead 2017 is shaping up to be a period of detente between… Continue reading China Remains Off the Radar
The Financial Times – Martin Wolf: China faces a tough fight to escape its debt trap| I have argued that it is in the interests of China and the rest of the world to keep their financial systems separate. The rapid growth of indebtedness and the size of its financial system represent a threat to… Continue reading Problems In China