Charts of the Week Topics Covered This Week Include: Timing The Next Rate Hike Company Guidance Bond ETFs Inflows Boom Investors Continue To Pour Money Into Bond Mutual Funds An Update On Money Funds Prior To Rules Change An Update On Money Funds Prior To Rules Change – 2 A Look At The Hedge Fund… Continue reading Charts of the Week
<Click on graphic for larger image> Comment Jim Bianco was on Bloomberg Asia last night discussing U.S. earnings, central banks and the odds of a U.S. recession. To view the interview, click on the image above. To view any of our recent interviews, click here. Yesterday Alcoa, who’s earnings release is considered the unofficial start… Continue reading Earnings And The Markets
<Click on chart for larger image> Bloomberg.com – A $7 Trillion Moment of Truth in Markets is Just Three Days Away Some $1 trillion worth of assets have shifted from prime money market funds into government money market funds that invest in safer assets such as short-term U.S. debt, according to Bloomberg estimates. The exodus has driven… Continue reading An Update On Money Market Funds Prior To Rules Change
<Click on chart for larger image> CNBC – A normally routine Fed release just got a lot more important Investors will get a peek behind the curtain Wednesday at a Federal Reserve suddenly divided and closer to an interest rate hike than it has been all year. September’s Federal Open Market Committee meeting featured something not often… Continue reading Why Today’s FOMC Minutes Matter
<Click on chart for larger image> Economic Calendar – US Labor Market Conditions Index Declines 2.2 In September The Labor Market Conditions Index (LMCI) recorded a decline of 2.2 for September following a revised 1.3 decline the previous month, which was originally reported as a 0.7 fall. The index has fallen in seven of the last eight… Continue reading The LMCI Falls Again
The Financial Times – A dovish tilt beckons for the Fed Policy is expected to be tightened if moderate data continue and reaction to US election is calm Keep February 3, 2018 in mind. That’s the day that Janet Yellen’s term as chairman of the Federal Open Market Committee ends, presuming she is not reappointed. Even… Continue reading A More Dovish Fed Is On The Horizon
<Click on graphic for larger image> The Wall Street Journal – Germany’s Banking Problem Is Bigger Than Deutsche Bank Germany may be Europe’s economic and political powerhouse, but you wouldn’t know it from its banks. Deutsche Bank AG , Germany’s largest lender, is struggling with a litany of problems. It faces a multibillion-dollar settlement with the U.S.… Continue reading Germany’s Banking Problem
Bloomberg Business – Narayana Kocherlakota: Bring the Fed’s Dead Meetings to Life First, Yellen could bring them to life by holding a press conference after every FOMC meeting, as the European Central Bank does. The Fed should also consider including other FOMC participants in the briefings, also the way the ECB does it. For example, Yellen often is… Continue reading The Fed’s “Dead” Meetings
The Wall Street Journal – LUV Your Stock: Study Shows That Ticker Symbols Matter A study published in the Journal of Financial Markets finds that the “likability” and even the pronounceability of a ticker symbol are positively related to a stock’s value. In other words, if your stock can’t have the symbol IBM or AAPL, at… Continue reading The Real Reason Why Some Stocks Are Loved
Bloomberg Business – Requiem for a Hedge Fund Dream … As I pointed out in August, the zero or very low interest rate environment boosts all assets with long duration. That’s a killer for long-short hedge funds, which thrive on volatility. And that’s part of the reason why Saka’s closure could be soon followed by… Continue reading Why The Zero Or Low Interest Rate Environment Hurts Hedge Funds
<Click on graphic for larger image> AQA – Ben Breitholtz: Low Volatility, Returns Likely Through Early 2017 Low volatility and returns across major asset classes may be here to stay through at least early 2017. Continued belief in accommodative central banks and economic growth stuck near one-year averages across the globe do not favor rising… Continue reading Low Volatility
MarketWatch.com – Matthew Lynn: 3 ways the end of QE will remake markets and economies It’s been eight years since central banks started printing money, and that is finally coming to an end … One, the banking and finance sector will shrink even further. QE may not have done as much as was hoped for the… Continue reading Ending QE And Market Response