<Click on graphic for larger image> The Economist – Buttonwood: Sovereign-bond issuers shrug off downgrades Bon-market vigilantes have lost their menace The rise of populism means that governments are even less likely to worry about an adverse reaction in the bond markets. Donald Trump has promised a combination of tax cuts, infrastructure spending and the… Continue reading Corporate Bonds
<Click on chart for larger image> The Financial Times – China makes record cuts to US Treasuries holdings Selling comes at a delicate time for bond market facing higher inflation China cut its holdings of US government bonds by the most on record last year, underlining another risk for investors in the $13.9tn market already grappling… Continue reading China’s U.S. Treasuries Holdings Rise Slightly In December
<Click on graphic for larger image> Bloomberg.com – ‘In Trump We Trust’ Is Market Mantra as Turmoil Besets White House One month and it’s the best stock market since Lyndon Johnson ‘We’re getting a bit of a civics lesson here,’ a manager says Despite Russia and Michael Flynn, the tweets and CNN, the stock market has… Continue reading Soaring Optimism Continues
<Click on chart for larger image> Bloomberg Business – BlackRock Backs Gold to Hedge Market Risk Gold has surged 8 percent in 2017 on an uptick in haven demand Investors should probably be a little more nervous, according to one BlackRock Inc. money manager. Stocks have rallied to records amid signs of stabilization in China’s economy… Continue reading Money Moves Back To Precious Metals
<Click on graphic for larger image> The Wall Street Journal – U.S. Household Debts Climbed in 2016 by Most in a Decade The total amount of debt held by American households climbed in 2016 by the most in a decade, driven by broad and steady increases in credit card debt, auto and student loans, and a… Continue reading Too Much Debt?
Bloomberg – Rob Arnott Says You’ll Be Sorry for Ignoring Smart Beta Warnings Firm launches new timing site showing low-vol as still pricey One year after battling Cliff Asness in public over whether smart beta ETFs are in a bubble, the Research Affiliates co-founder is doubling down on his warning about the hugely popular investment vehicles.… Continue reading All Stocks are Now Part of Minimum Volatility Strategies!
<Click on graphic for larger image> Bloomberg – No More Waiting: Inflation May Have Already Hit Fed’s Target Economists boost estimates for preferred gauge after CPI data Forget wondering when U.S. inflation will reach the Federal Reserve’s goal. It may be there already. The biggest monthly jump in almost four years in the Labor Department’s consumer-price index… Continue reading Is the Federal Reserve Behind the Curve?
MarketWatch – Investors still aren’t taking ‘Frexit’ seriously enough Marine Le Pen’s chances are much stronger than believed Over recent weeks, the premium for French government bonds over their German equivalent has widened to its highest level since November 2012. But financial markets still may be underestimating the threat from France’s presidential election scheduled for… Continue reading Frexit
The Financial Tribune – Two-Thirds of Germans Want Merkel Out Up until recently it seemed a very safe bet that Angela Merkel would win another term as chancellor in September’s election, but more and more polling suggests otherwise. The most recent poll by YouGov published on Monday showed that 64% of Germans are in favor… Continue reading Angela Merkel
<Click on graphic for larger image> The Wall Street Journal – Greg Ip: Global Risks Begin to Recede It’s tempting to see surging U.S. stock prices and business confidence as all coming in response to President Donald Trump’s election. But the upswing is global: In Europe, Japan, China and elsewhere, business surveys and markets have… Continue reading The Trump Rally
<Click on graphic for larger image> Topdown Charts (Blog) – Seasons of the VIX The CBOE VIX or volatility index has ground down to very low levels, and as noted in the recent S&P500 #ChartStorm a series of signals and indicators are starting to light up that say the VIX is too low and is… Continue reading VIX Seasonality