<Click on graphic for larger image> MoneyBeat (WSJ Blog) –Line Drawing With Gross and Gundlach It sounds like the very definition of high finance: Two titans of the bond market slugging it out over high Treasury bond yields have to go to declare the three-decade bond bull market kaput. In fact it comes down to… Continue reading Gross vs. Gundlach: Technical Analysis
Bloomberg.com – Carney Defends BOE’s Actions on Brexit, Disagrees With Haldane Mark Carney launched his renewed defense of the Bank of England Wednesday, saying its actions helped avert financial stability problems in the wake of June’s vote to leave the European Union. In response to questioning from lawmakers in London, the BOE governor also sought… Continue reading Carney Defends The BOE
The Wall Street Journal – Calm Reigns in Chinese Stocks as Yuan Swings While the fortunes of China’s currency may be keeping investors on their toes already this year, the country’s often bumpy stock markets have rarely been calmer. The volatility of the yuan-dollar exchange rate has been rising in recent weeks, buffeted by the… Continue reading Stocks Ignore Currency Moves
<Click on chart for larger image> The Wall Street Journal – Investors Bolt Mexico as Peso Enters Free Fall Global investors are fleeing Mexico’s financial markets, sending the peso to record lows on mounting concerns that Donald Trump’s trade policy could end the country’s privileged status among developing countries. The peso on Wednesday tumbled to… Continue reading The Peso’s Wild Ride
<Click on graphic for larger image> The Wall Street Journal – Bonds Rebound, and Companies Dive In So much for the death of the bond market. For all the talk in recent months of how faster economic growth and higher inflation would spur a sustained move out of fixed-income investments and into stocks, bond prices… Continue reading Investment Grade Debt Off To Fast Start In 2017
<Click on graphic for larger image> Bloomberg.com – Long-Short Hedge Funds Are Ditching the Shorts to Focus on Longs What happens when you take the “short” out of a long-short trading strategy? Some hedge funds are about to find out. Equity long-short fund managers, the biggest category in hedge funds, hold the fewest bearish stock bets… Continue reading Long-Short Funds Focus On Going Long
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Conference Call Presentation/Charts of the Week Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/011217.mp3|titles=Conference Call ] Topics: Another Poor Year For Hedge Funds Active Managers Struggle Active Managers Want/Need Falling Correlations Macro Funds Peaked On March 19, 2015 The Dollar Peaked On March 6, 2015 Asset Class Correlations Falling Too Despite Low Correlations, Macro Funds Still Struggling Is The Market Overvalued?… Continue reading Conference Call Presentation/Charts of the Week
Bloomberg Markets – Forget 30 Years of Stock and Bond Divergence, Bernstein Says Investors should expect lower returns in next five to 10 years It was nice while it lasted. Three decades of divergence between stocks and bonds may be about to end, according to Sanford C. Bernstein & Co., necessitating a total shift in investor… Continue reading Will The Divergence Between Stocks And Bonds End Soon?
<Click on chart for larger image> FT Alphaville – The disinflation scare is officially over (for now) “Trumpflation” may yet materialise, but options prices imply traders are as convinced as they’ve ever been (70 per cent chance) the Fed will keep inflation within a range of 1 to 3 per cent, on average, over the… Continue reading What Type of Inflation Should We Expect?
The Wall Street Journal – Rising Currency Volatility Keeps Stock-Watchers on Edge With turbulent foreign-exchange markets, ‘there could be repercussions for equities,’ says one strategist Global equities have climbed since the U.S. presidential election in November, leading to a decline in the CBOE Volatility Index, known as the VIX. The measure, which tracks investor expectations for… Continue reading Abnormally Low Equity Volatility a Concern
<Click on chart for larger image> The Financial Times – John Authers: Rotating is back in style The Great Rotation is back in the news. For the uninitiated, this is the concept that at some point money will flow out of bonds and into stocks as the historic bull market in bonds finally begins to turn.… Continue reading Is The Great Rotation A Myth?