The Financial Times – Hedge fund geeks outshine activists in earnings bonanza Quants fail to displace all stockpickers as Citadel’s Ken Griffin bags joint top spot The mantra of Wall St hedge funds was once “only the strongest will survive”. It may now have to change to “the geeks will inherit the earth”. Hedge fund… Continue reading Hedge Fund Quants vs Stockpickers
<Click on graphic for larger image> The Wall Street Journal – WSJ Survey: Economists See a Slight Decline in the Still-Elevated Odds of U.S. Recession The U.S. stock market has partially recovered from its swoon earlier this year and the most recent report on the jobs market showed the economy added 242,000 jobs in February.… Continue reading Odds Of A Recession In The Next 12 Months At 20%
<Click on graphic for larger image> The Wall Street Journal – Oil Bust Gives Billionaire Deal-Maker Buyer’s Remorse The deal, one of the largest announced in 2015, is now in danger of becoming one of the highest-profile corporate casualties of the oil bust. After Messrs. Warren and MacInnis announced the agreement on Sept. 28, oil… Continue reading M&A And The Drop In Oil
Barron’s – Jeremy Grantham’s Take on Oil, Metals and Agriculture The commodities guru argues that oil stocks can recover while farmland is his “first choice” for the long run. Oil stocks should do well over the next five years, perhaps regaining much of their losses. But, after five years, prospects are more questionable, and, beyond… Continue reading Jeremy Grantham Speaks
CNBC – The Fed never anticipated low rate impact on financial sector: Fisher Persistently low interest rates are doing “a lot of damage,” particularly to the financial industries that underpin the U.S. economy, former Dallas Federal Reserve President Richard Fisher said Wednesday. The companies Fisher said he’s most worried about are insurers. “Insurance companies, particularly… Continue reading Low Rates And The Financial Sector
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<Click on image to view video> Comment Jim Bianco was on Bloomberg TV yesterday offering his opinion on the Federal Reserve, the markets and the story below. To view the interview, click on the image above. To view any of our recent interviews, click here. Bloomberg.com – Bill Gross, Mohamed El-Erian Warn Against Counting the… Continue reading When Is The Next Hike?
Bloomberg.com – Oil Rally May Boost Allure of Drilled-But-Uncompleted Wells The rising price of oil may make drilling uncompleted wells the cheapest means of adding production. U.S. shale producers may take advantage of the rising price of WTI by tapping their drilled but uncompleted wells, as they offer one of the cheapest means of adding… Continue reading Will The Oil Market Get DUC-ed?
<Click on chart for larger image> Comment The tables below include every issue (not issuer), sovereign, agency, corporate, etc. They do not include derivatives such as MBS, CBO, CDO, etc. The first table below highlights negative rates in developed markets. The only place negative rates can be found is among high quality sovereign yields among… Continue reading Some Perspective On Negative Yields
<Click on graphic for larger image> The Wall Street Journal – The Recession’s Economic Trauma Has Left Enduring Scars Effects of losing a job linger, from lower wages and home ownership rates to psychological problems Gary Reece was earning six figures when he lost his tech-industry job in 2000. He was making about half his… Continue reading How The Great Recession Changed The Economy
Bloomberg Business – Even China’s Party Mouthpiece Is Warning About Debt China must face up to bad-loan risks, not hide them: article China’s leading Communist Party mouthpiece acknowledged the risks of a build-up of debt that is worrying the world and said the nation needed to face up to its nonperforming loans. High leverage is… Continue reading Chinese Debt Concerns
Bloomberg.com – Hedge Fund Managers Lose Their Swagger In six months, investors have withdrawn $16 billion. The worry for the hedge fund crowd is that their business model is broken. The funds, generally available only to wealthy investors, may choose to make big bets on just a few ideas, or that securities will fall in… Continue reading Your Daily Installment In Kicking Hedge Funds In The Teeth