Bloomberg.com – Mohamed El-Erian: Six Rules For Navigating Volatile Markets Be on the lookout for good names trading at really cheap levels. Sudden market air pockets, such as the one a few weeks ago (and there will be lots more), can drag down even the best securities, offering investors interesting opportunities. Use the periodic bouts… Continue reading How To Handle Volatility
<Click on graphic for larger image> The Wall Street Journal – Greg Ip: Abenomics Is Doing Better Than You Think A recent run of bad news has revived fears that Japan is returning to its familiar role as sick man of the world economy. Its economy shrank in the second quarter and may have done… Continue reading Is Abenomics Working?
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Charts of the Week Topics Covered This Week Include: The “Bad News Is Good News” Rally Hedge Fund Returns Why Is World Growth Struggling? A Preview Of Q3 Earnings Crude Oil Supply Rig Counts Continue To Fall … … But Production and Inventories Are Up Unemployment Rates Employment In Pictures Labor Force Participation Rate S&P… Continue reading Charts of the Week
<Click on graphic for larger image> Bloomberg.com – Bond Traders Win Over Economists as Fed Calls Pushed Out to 2016 Deutsche Bank, BNP Paribas join chorus for central-bank delay Swaps, futures point toward March as likely liftoff target After the Fed’s Sept. 17 meeting, Chair Janet Yellen said most policy makers still expect a rate… Continue reading Timing The Rate Hike
<Click on chart for larger image> The Wall Street Journal – Once the Biggest Buyer, China Starts Dumping U.S. Government Debt Shift in Treasury holdings is latest symptom of emerging-market slowdown hitting global economy Central banks around the world are selling U.S. government bonds at the fastest pace on record, the most dramatic shift in… Continue reading China’s Treasury Holdings
Atlanta Federal Reserve – Latest forecast — October 6, 2015 The GDPNow model nowcast for real GDP growth (seasonally adjusted annual rate) in the third quarter of 2015 is 1.1 percent on October 6, up from 0.9 percent on October 1. The model’s nowcast of the third-quarter growth rate in real personal consumption expenditures increased… Continue reading GDPNow
<Click on chart for larger image> The Financial Times – John Authers: Hold tight for a bumpy US earnings season Stronger dollar and lack of guidance will make for some surprises Where next? Stock markets have a new range, and it is a scary one. Since the sudden August sell-off, for which China’s travails provided… Continue reading Q3 Earnings Outlook And The Dollar
The Financial Times – Martin Wolf: Beware of the liquidity delusion Conventional wisdom has not had a great run over the past decade so it should be questioned Is the fragility of market liquidity a reason for concern? The “flash rally” in US Treasury bonds in October 2014 and the “German Bund tantrum” in April… Continue reading Market Liquidity
The Financial Times – Hedge funds suffer worst month since October 2008 Hedge funds have suffered their biggest monthly monetary loss since the 2008 financial crisis in the wake of market turbulence that battered the portfolios of some of the industry’s best known investors. The sector as a whole lost $78bn due to its performance… Continue reading More Hedge Fund Pain
<Click on chart for larger image> Bloomberg Business – Oil Set for Longest Rally Since April as U.S. Stockpiles Decline Oil headed for its longest rally in almost six months as U.S. industry data showed crude stockpiles fell in the world’s biggest consumer. West Texas Intermediate futures rose as much as 2.4 percent in New… Continue reading Crude Oil Prices
Alhambra Investment Partners – How Revisionism Saves Bernanke If monetary policy was so effective then why did he clearly fail to use it in 2008, because if it was as effective as he claims there never would have been a Great Recession. And if it wasn’t properly deployed because he could not understand and appreciate… Continue reading More On Bernanke Defending His Legacy