Alpha Architect (Blog) – A Tug of War: Overnight Versus Intraday Expected Returns Months ago we highlighted a paper on intraday momentum, which states that the first half-hour return predicts the last half-hour returns. We find no evidence to support this result from our in-house backtests. This paper, taking the opposite view, points out that… Continue reading Money Is Made While Sleeping!
Comment Yesterday Jim was on Bloomberg TV Asia discussing Greece, Fed policy and earnings. To view the interview, click on the image above. To view any of our recent interviews, click here. <Click on graphic for larger image>
The Financial Times – Greek bailout talks with Europe break down Eurozone finance ministers’ first attempt to grapple with the bailout demands made by the new Greek government broke down in recriminations after the two sides failed even to agree a way to take negotiations forward after six hours of talks in Brussels. Jeroen Dijsselbloem,… Continue reading Greek Negotiations
Bloomberg Business – Goldman: Here’s Why Oil Crashed—and Why Lower Prices Are Here to Stay Oil prices have gotten crushed for the last six months. The extent to which that was caused by an excess of supply or by a slowdown in demand has big implications for where prices will head next. People wishing for… Continue reading Goldman Calls For Continued Low Oil Prices
The Wall Street Journal – Sweden Cuts Rate, Announces Bond-Buying Program Sweden’s central bank on Thursday cut its main interest rate into negative territory for the first time and announced a bond-buying program, as it joined a widening group of central banks trying out unconventional measures to battle low inflation. The Riksbank, the world’s oldest… Continue reading Sweden Joins The QE Party
The Wall Street Journal – U.S. Economic Growth Estimates for the Fourth Quarter Are Dropping After A Strong Six-Month Stretch The U.S. economy’s growth rate for the fourth quarter of 2014 is looking worse than initially thought, balancing out the strong six-month stretch that came before it. Gross domestic product, the broadest measure of goods… Continue reading Q4 U.S. GDP Estimates Heading Lower
Bloomberg.com – Who’s Afraid of the Rising Dollar? Not the Thriving U.S. Economy Don’t believe everything you hear about the corrosive effect a more expensive dollar has on corporate America. U.S. businesses and the world’s largest economy can handle the greenback’s strength just fine. Companies in the Standard & Poor’s 500 Index, from drugmaker Pfizer… Continue reading The Surging Dollar’s Effect On The Economy
The Wall Street Journal – Benefit of ECB’s Bond Buying: Fiscal Breathing Room Countries, Such as Spain and Italy, Gain Leeway to Stabilize Their Debt Ratios When the threat of Greek insolvency first erupted in 2010, the worries rapidly spread to the eurozone’s other peripheral economies, sending borrowing costs skyrocketing. This time around, what’s happened… Continue reading ECB QE
Bloomberg.com – Praet Says QE Most Powerful Through Portfolio Rebalancing The European Central Bank’s quantitative-easing program will have its greatest impact by encouraging investors to shift funds into riskier assets, such as loans to companies and households, Executive Board member Peter Praet said. “We expect it to be particularly powerful in terms of portfolio-rebalancing effects,”Praet… Continue reading Reviving The Portfolio Balance Theory
Business Insider – Apple’s $700 billion market cap is nothing compared to Dutch East India Company at its peak To everyone who says AAPLs upside from here may be limited due to the law of large numbers or some such (as if the NSA will ever stop handing out free “student loans” to make sure… Continue reading Apple’s Market Cap May Not Be So Large After All
The Wall Street Journal – A Fed Insider Calls for Reform Richard Fisher says it’s time to reduce the power of Washington and Wall Street. Richard Fisher, President of the Federal Reserve Bank of Dallas, believes “there’s too much power concentrated in the New York Fed.” And that goes as well for the Fed’s Washington… Continue reading A Call For Reform From Within The Fed