The Financial Times – Exchange traded funds: taking over the markets The products have transformed US bourses, but some worry that ETFs are breeding systemic risks This is part of a series on the global rise of exchange traded funds Stock markets have a new purpose. Once devoted to trading stocks and setting their prices,… Continue reading Are ETFs Swallowing The Markets?
Reuters – Italian minister, after talking to Renzi, sees new election likely in February Italy could have an election as early as February, a minister in Prime Minister Matteo Renzi’s outgoing government said on Tuesday, speaking after talking to Renzi. The comments will add to growing support for a quick vote as the only way… Continue reading A New Date On The European Political Calendar
<Click on graphic for larger image> The Wall Street Journal – Absent From Trump Rally in Stocks? Insider Buying A wave of investor money has propelled U.S. stocks to records since Donald Trump’s presidential-election victory. But one group has been missing from the buying frenzy: corporate executives. A total of 3,500 insiders at Russell 3000 companies… Continue reading Insider Selling
<Click on graphic for larger image> Bloomberg Markets – The World’s New Fear Gauge Is Ringing Alarm Bells in the Era of Trump A key barometer of risk aversion soared after Trump’s victory fueled a dollar rally Once upon a time, the cost to hedge currency risk in global trade and finance was relatively cheap. How things change.… Continue reading The World’s New Hedging Costs
<Click on graphic for larger image> LPL Financial Research – When Will Santa Come For Equities? December is the feel-good time of the year, and this also goes for equities, as December has been a strong month for the S&P 500 historically. As we showed in Welcome To The Strongest Month Of The Year For Equities… Continue reading The Santa Claus Rally
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The Wall Street Journal – Italy Rejects Reforms, Matteo Renzi Announces Resignation Italian voters on Sunday rejected constitutional changes backed by the government, prompting Prime Minister Matteo Renzi to announce his resignation and handing populists a victory in the heartland of Europe. With virtually all the votes counted early Monday, 59.6% were “no,” according to… Continue reading Italian Referendum Continues Populist Wave
The Wall Street Journal – (November 20, 2016) Venezuela’s Nemesis Is a Hardware Salesman at a Home Depot in Alabama His site tracks black-market exchange of the bolivar, swaying the price of everything Public Enemy No. 1 of Venezuela’s revolutionary government is Gustavo Díaz, a Home Depot Inc. employee in central Alabama. On his… Continue reading Hyperinflation In Venezuela
<Click on graphic for larger image> The Financial Times – Why active fund managers should cheer the rise of ETFs Over the past 10 years assets invested in US exchange traded products tracking everything from the S&P 500 to global uranium miners has risen from $300bn to more than $2tn. This has fundamentally altered the… Continue reading Active vs. Passive
The Financial Times – This bond sell-off matters, but it’s not yet a turning point Bond prices are tumbling, which means bond yields are rising. Does it matter?…When it comes to trade, higher yields in one country will naturally attract funds in that direction (as money seeks out a higher interest rate), and so strengthen… Continue reading Rising Yields
<Click on graphic for larger image> The Wall Street Journal – China Escalates Efforts to Cool Down Financial System China’s central bank has stepped up efforts to drain cash from the country’s financial system in the past week, as it seeks to curb excessive borrowing and tame frothy markets. The cost for banks to borrow… Continue reading China Drains Cash From Its Financial System
<Click on graphic for larger image> Bloomberg.com – One Sign That Dollar Deleveraging Is Already Here The rally in the U.S. dollar coupled with seismic changes in the $2.7 trillion money market fund (MMF) industry, is sparking a fresh bout of cross-border deleveraging, according to new analysis from Citigroup Inc. That’s because a stronger dollar… Continue reading Dollar Deleveraging