<Click on graphic for larger image> Zero Hedge – 100 Years Ago Today: “Keep Calm And Buy Stocks – World War I Is Priced In” The more things change, the more they stay the same. Amid the growing geopolitical powder keg of 2014, the deafening roar of BIS-deniers proclaiming that everything bad is priced-in and… Continue reading This Time Is Different, 100th Anniversary Edition
The Washington Post – Robert J. Samuelson: The business cycle, RIP? As a tool for analyzing and influencing the economy, is the business cycle outdated? Yes, says the Bank for International Settlements (BIS) in Basel, Switzerland. Unless you’re deep into today’s economic debates, you’ve probably never heard of the BIS. But its annual reports —… Continue reading Is The Business Cycle Over?
<Click on graphic for larger image> FT Alphaville – I’m shocked, shocked, to find us in a low vol environment But it’s worth remembering that this period of low vol isn’t particular unusual, even if its spread across all asset classes is more striking. From Goldman again: … it is not surprising that volatility is… Continue reading A Century of Volatility
<Click on graphic for larger image> New York Magazine – Andrew Rice: Stash Pad The New York real-estate market is now the premier destination for wealthy foreigners with rubles, yuan, and dollars to hide. The buyer, an Italian, was in town for a week, with a million or so dollars to spend. We met one… Continue reading Is Ultra-luxury Manhattan Real Estate A Money Laundering Scheme?
<Click on chart for larger image> <Click on chart for larger image> The Financial Times – Hedge fund correlation risk alarms investors Hedge funds’ correlation with the equity market has risen back to pre-financial crisis highs, raising fears that the $2.7tn industry could again suffer sharp losses in the event of a market slide. The… Continue reading Are Hedge Funds Expensive Beta Bets?
The Wall Street Journal – Surprise Is the Only Constant This Year Similarities between Scripture and financial markets are rare, but one verse seems to be a recurring theme: “The first shall be last, and the last shall be first.” Pundits and investors alike have a tendency to extrapolate the recent past into future expectations.… Continue reading A Surprising Year?
<Click on chart for larger image> The New York Times – Modest Euro Zone Growth Fails to Dent Unemployment Rate The unemployment rate in the euro zone remained close to a record high in May, according to official data released on Tuesday, a reminder that despite modest growth, the recession has never ended for millions… Continue reading Eurozone Unemployment
<Click on chart for larger image> DealB%k (NYT Blog) – Mergers Hit a 7-Year High, Propelled by a Series of Blockbuster Deals Deal makers have been thinking big this year. Buoyed by some of the biggest deals in recent memory, 2014 has so far been the kind of year that bankers and lawyers have been… Continue reading Blooming M&A
Residents in the Georgetown community of Hillandale are complaining about the security vehicles that idle in front of the home of Federal Reserve Chairwoman Janet Yellen. The Wall Street Journal – Security Detail for Fed Chairwoman Irks Neighbors Residents in Gated Community Say Commotion Surrounding Yellen Is Disrupting Neighborhood In the Georgetown gated community of… Continue reading She Runs The World Now
None Today
Bloomberg.com – How Memphis Firm Decoded Bond Secrets Mystifying Wall Street Working for a firm based about 1,000 miles (1,600 kilometers) from Wall Street with roots that date back to the Civil War, FTN’s Jim Vogel and Chris Low were among the few who correctly urged investors to ignore the consensus calling for an inevitable… Continue reading In Search Of The Elusive Bond Bulls
CBS News – 60 Minutes: Disability, USA Steve Kroft reports on the alarming state of the federal disability program, which has exploded in size and could run out of money When it began back in the 1950s, the federal disability insurance program was envisioned as a small program to assist people who were unable to… Continue reading How Disability Is Skewing The Labor Market