The Financial Times – ‘Helicopter money’ on the horizon, says Ray Dalio Bridgewater boss predicts an era of more radical monetary policy Bridgewater’s Ray Dalio has argued that central banks’ ability to invigorate economic growth has atrophied, and predicts a new era of radical monetary policy possibly involving “helicopter money”. Central banks around the world… Continue reading Ray Dalio Speaks
<Click on graphic for larger image> The Wall Street Journal – IPO Market Dries Up as Investors Retreat The IPO market is foundering. Of the almost 175 companies that made their U.S. stock-market debuts in 2015, more than 70% are now trading below their IPO prices. On average their stocks are down about 20%. Nine… Continue reading The IPO Market
<Click on chart for larger image> Bloomberg Business – ‘Deflationary Bias’ May Afflict U.S. Economy, Fed Paper Finds The U.S. economy may be saddled with a “deflationary bias” after the last recession that makes it harder for the Federal Reserve to achieve its 2 percent inflation goal, according to research published this month by the… Continue reading Deflation And The Economy
MarketWatch.com – Chilling ways the global economy echoes 1930s Great Depression era Protectionism, shaky debt, and weak banking systems have consequences One view of what caused the Great Depression in the 1930s is that the Federal Reserve failed to prevent a collapse in the money supply. This is the famous thesis of Milton Friedman’s and… Continue reading Bearish Talk
<Click on chart for larger image> Bloomberg Business – Wall Street Banks Gorge on Treasuries and That’s a Warning Sign Primary dealer Treasury holdings are the highest since 2013 Wall Street’s biggest banks boosted their Treasury holdings to the highest level in more than two years, and one of them says that’s a warning sign… Continue reading Banks Increase Their Treasury Holdings
Bloomberg View – Stephen Mihm: Bear Markets Don’t Predict Recessions, But Liquidity Might In a liquid market, stocks can be bought and sold without significant alterations of the existing price. For example, someone attempting to sell shares will find buyers above and below the asking price, and the transaction itself doesn’t dramatically impact the existing… Continue reading Why Liquidity In The Markets Can Predict Recessions
Liberty Street Economics (NY Fed Blog) – Are Asset Managers Vulnerable to Fire Sales? According to conventional wisdom, an open-ended investment fund that has a floating net asset value (NAV) and no leverage will never experience a run and hence never have to fire-sell assets. In that view, a decline in the value of the… Continue reading Fire Sales In Asset Management
Bloomberg Business – Negative Yields, `Brexit’ Combine to Drive Europe Fund Outflows Investors are ditching European bonds and equities in favor of U.S. fixed-income assets as debt yields sink in the region and concerns mount that the U.K. may exit the European Union. Investors redeemed more than $1.5 billion from European bond funds in the… Continue reading Outflows In European Bond Funds
The Financial Times – Citadel slims down as torrid markets deliver losses Hedge fund cuts more than a dozen staff as losses at a key equity unit mar start to 2016 Citadel was last month named “hedge fund of the year” by Risk Magazine, after returning 14 per cent in 2015. But in 2016 its… Continue reading Pain At Citadel
Fed on 2016 rate hikes. pic.twitter.com/CYvFTXcfnR — Pedro da Costa (@pdacosta) February 18, 2016 [hana-flv-player video=”https://www.biancoresearch.com/bianco/SubscriberArea/newsclips/2016/02/seinfeld.mp4″ width=”600″ height=”495″ description=”” player=”3″ autoload=”false” autoplay=”false” loop=”false” autorewind=”true” /]
Comment Today at 9 AM CT (10:00 AM ET, 7:00 AM PT, and 15:00 GMT), Bianco Research, in conjunction with Arbor Research & Trading, will be hosting a webcast/teleconference moderated by Jim Bianco. Join us today as we discuss how volatility in the markets reconciles with economic fundamentals. Click here to register [pageview class=”PDFViewer” url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=282″]
<Click on graphic for larger image> Bloomberg.com – Three Straight 1% Rallies Are Extremely Rare in S&P 500 The Standard & Poor’s 500 Index is poised for a third day of 1 percent gains — something that hasn’t happened since October 2011. Such concentrations have occurred at a rate of only two in 1,000 trading… Continue reading A Rare Feat For The S&P 500