Bloomberg Business – Lisa Abramowicz: The $50 Trillion Conundrum There’s been a lot of discussion about how much cash investors are holding these days. BlackRock puts the figure at more than $50 trillion, a figure that includes a host of different metrics, from central-bank assets to financial-firm reserves and consumer savings accounts. Other measures show a… Continue reading What To Do With Cash
<Click on graphic for larger image> Bloomberg Business – Investors Are Pouring Into an ETF That Protects Against Higher Inflation It’s the tail end of 2016, but one of Wall Street’s favorite trades—inflation-protected Treasuries—heading into this year is finally back in vogue. Investors’ appetites for an exchange-traded fund that provides exposure to bonds whose principal and coupon payments are… Continue reading Betting On Inflation
<Click on chart for larger image> The Financial Times – Wall St fear barometer strikes post-Brexit vote high Wall Street’s so-called “fear gauge” climbed to the highest level since the aftermath of the June Brexit vote as investors braced for next week’s presidential election. The Vix index rallied by 9.2 per cent on Thursday to 21.09,… Continue reading Volatility
The Financial Times – Rise of the algos rattles commodity traders Growing price transparency and algorithmic-led trading is transforming trading Gold, copper and EU power are moving from highly liquid markets into the hyperliquid level. One example of a low-liquidity commodity increasing its liquidity is iron ore, which was traded on a contract basis until 2009.… Continue reading Algorithms In Commodity Trading
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Barrons – Should Markets Fear a President Trump? Would markets be in trouble if Donald Trump were elected president? While they might take a hit, a Trump presidency could yield opportunity as well, according to The New York Times . “The conventional wisdom,” says the Times, is that stocks would fall sharply in the wake… Continue reading Politics & The Markets
<Click on chart for larger image> <Click on chart for larger image> Forbes – It’s Not Election That’s Killing Stock And Bond Prices The Bank of Japan has admitted defeat. The Bank of England is not going the way of zero interest rates. The European Central Bank is wrapping up on quantitative easing. Yes, it… Continue reading Negative Rates
https://assets.bwbx.io/av/users/iqjWHBFdfxIU/vyRtMq_heMVE/v2.mp3 Bloomberg.com – Jim Bianco on Yield Curve: Next Big Move In Rates Will Be Lower Jim Bianco, President and Founder of Bianco Research, on his outlook for bond yields, and a big picture look at inflation and growth.
The Wall Street Journal – Fed Sends New Signals About a Possible December Rate Increase The Fed’s postmeeting policy statement pointed to signs that inflation is firming, an indication officials are prepared to raise rates in the weeks ahead. It also included a subtle suggestion that the bar to raising rates for the first time… Continue reading Understanding Fedspeak
<Click on graphic for larger image> ECRI – The Trouble with Inflation CPI food and energy growth has already risen to a 22-month high, following the stabilization in energy prices. In contrast, weighed down by falling prices – especially for vehicles and apparel – yoy growth in the CPI for core goods is languishing near… Continue reading Divergent Inflation Measures
Bloomberg.com – Deutsche Bank Thinks Draghi’s Gone Over to the ‘Dark Side’ Chief economist David Folkerts-Landau says ECB has entered new dimension of moral hazard “While European central bankers commend themselves for the scale and originality of monetary policy since 2012, this self-praise appears increasingly unwarranted,” he writes, going on to conclude that the “ECB… Continue reading The Dark Side of Draghi
<Click on graphic for larger image> ValueWalk – Hedge Fund Fee Cutting Sign of Times The hedge fund fee is a major issue in 2016. Woe is the hedge fund manager in 2016, the year the passive investing gods began to violently vent their anger on high fees without performance. The toll this new market… Continue reading Hedge Fund Fees