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January 12, 2011
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Usually mutual fund flows follow performance. However this was not the case in the last decade. As the first chart shows, net new cash flows into domestic equity mutual funds began diminishing as early as 2004. By the all-time high in 2007, the public was a net seller and has not returned since. Many believe… Continue reading Don’t Expect Mutual Fund Inflows Anytime Soon
<Click on chart for larger image> The Financial Times – Concerns over Belgian debt levels grow The king of Belgium on Monday asked the country’s caretaker government to move ahead with public spending cuts, as concerns over Belgium’s debt levels and a political crisis sent its bond prices tumbling. The call came as 10-year debt… Continue reading Is Belgium Now One Of The PIIGS?
Zero Hedge (Blog) – 94% Of The S&P 500’s Performance In 2010 Was From Gains On Just The First Trading Day Of Each Month And now for today’s stunning mutual fund first of the month-day statistic: David Rosenberg notes that “134 points of the 143 points that were racked up in 2010 occurred in the… Continue reading Capture All Of The S&P 500′s Gains In Only 12 Days Per Year
<Click on chart for larger image> The Wall Street Journal – Tensions Rise Before Portugal Auction Europe’s Central Bank Steps In to Buy Nation’s Bonds, Traders Say; As Sale Looms, Investors Worry Spain Is Next Problem A selloff in Portuguese debt Monday prompted the European Central Bank to intervene by buying the country’s bonds, traders… Continue reading Portugal
The Wall Street Journal – Industry Eyes Bank as Prop for Money Funds The mutual-fund industry on Monday presented a plan to backstop money-market funds, acknowledging that the funds could pose major risks during a market panic even though they aim to keep their values steady. The Investment Company Institute, a trade group, presented regulators… Continue reading Money Market Funds
The New York Fed – The Fed’s QE2 Traders, Buying Bonds by the Billions In a spare, government-issue office in Lower Manhattan, behind a bank of cubicles and a scruffy copy machine, Josh Frost and a band of market specialists are making the Fed’s ultimate Wall Street trade. They are buying hundreds of billions of… Continue reading A Behind The Scenes Look At QE2
The Wall Street Journal – Goldman Opens Up to Mollify Its Critics Goldman Sachs Group Inc., seeking to beat back criticism that it abused its muscle and trading savvy to put its own interests ahead of clients, agreed to release details on how and where the Wall Street giant makes its money. In a 63-page… Continue reading A More Transparent Goldman Sachs?
The Boston Globe – That guy who called the big one? Don’t listen to him Inside the paradox of forecasting That economist was New York University’s Nouriel Roubini. And since he called the Great Recession, he has become about as close to a household name as an economist can be without writing “Freakonomics” or being… Continue reading When Prophets Are Wrong
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Comment Jim Bianco was on Bloomberg TV Friday arguing that QE2 is a primary driver of the stock market. To view the interview click on the picture above. To view any of our recent interviews click here. In our November 8 post titled POMO’s Positive Effect … On Everything we showed charts detailing the effect… Continue reading QE2 And Stocks
The subject of interest on the debt is coming to the forefront with all the talk of raising the debt ceiling limit. Below are some facts, charts and tables to put this discussion in perspective. Real-Time Economics (WSJ Blog) – Number of the Week: Interest Payments on Federal Debt So far, markets don’t seem overly… Continue reading Looking At Interest On The Federal Debt