Newsclips
Passive Investing Out of Favor?
October 30, 2018
The herd mentality of passive flows diving into major ETF asset classes is breaking up as the stocks and bonds become disconnected.
The herd mentality of passive flows diving into major ETF asset classes is breaking up as the stocks and bonds become disconnected.
Search trends related to consumer borrowing and high tech industries bear watching as markets gauge the Bank of Canada's appetite for faster tightening.
Only 38% of companies holding conference calls this quarter have mentioned the word "tariff." 62% have not. Like last quarter, corporate America and TV news channels do not see tariffs as an issue.
House control is still expected to go to the Democrats, but their lead is diminishing. The Senate is still a lock for the Republicans.
Today's topics include Trump vs Powell, inflation, stock market volatility, Treasury debt issuance, the yield curve as a predictor of future recessions, active funds suffer and the yuan continues to fall.
The disconnect between high equity and low U.S. Treasury volatility can be explained by swiftly rising spending, trade, and monetary policy into the fall of 2018.
Waning global economic growth is rearing its head in search trends for key industrial categories in the U.S. Risk-off flows are fueling materials sector underperformance.
About half the S&P 500 companies have reported Q3 2018 earnings. Although Q3 growth estimates remain above 20%, companies' shares are not being rewarded for beating estimates. In a worrisome sign for the future, the majority of companies are coming up short on revenues.
An update of the latest metrics on the midterm elections. House control is still expected to go to the Democrats but their lead is diminishing. The Senate is still a lock for the Republicans.
Today's topics include a peaking economy, tighter financial conditions, algos taking a hit, derivatives regulation, earnings calls citing the dollar as reason for weakness, the stock/bond regime change and Italy searching for solutions.