The Wall Street Journal – Stock-Market Valuations Look More Appealing After Last Week’s Rout Despite upbeat outlook for companies’ earnings, share prices were considered expensive by historical standards For investors who have complained about the stock market being too expensive, last week’s sudden rout has something good to offer. Major U.S. indexes ended the week Friday… Continue reading The Market Is Getting Cheaper
The Economist – Insider trading has been rife on Wall Street, academics conclude One study suggests insiders profited even from the global financial crisis; another that the whole share-trading system is rigged INSIDER-TRADING prosecutions have netted plenty of small fry. But many grumble that the big fish swim off unharmed. That nagging fear has some… Continue reading Insider Trading
Bloomberg – Trump’s Deregulation Has Had Little Economic Impact, Goldman Says President Donald Trump’s deregulation agenda for industry has had limited impact on the job market and capital spending during his first year in office, according to Goldman Sachs. A study by the bank found little evidence that “non-financial deregulation has had meaningful macroeconomic impact… Continue reading Goldman Skeptical Of Deregulation Impact
Bloomberg.com – Hedge Funds’ Biggest Short in Bonds Faces Make-or-Break Moment Speculators boost bets against 10-year Treasuries before CPI Resistance toward higher yields seen as market stabilizes Hedge funds and other large speculators are more convinced than ever that the 2018 bond-market rout will resume in the days ahead. The group, known for trading… Continue reading Are Bond Traders Too Bearish?
The cool, calm individual throughout recent volatility have been U.S. Treasury investors. We dig into past instances of low U.S. Treasury implied volatility (MOVE) relative to spiking equity volatility (VIX), which have a habit of preceding rebounds in core inflation.
Bloomberg – Oil Explorers Expand U.S. Drilling by Most in Almost Five Years U.S. oil explorers increased the number of drilling rigs this week by the most in almost half a decade as domestic crude production roared toward unprecedented highs. Working rigs drilling for American crude rose by 26, bringing the total to 791, the biggest one-week… Continue reading Drilling Activity Takes Off
View PDF The Wall Street Journal – The Tax Law Is About to Make Analyzing Earnings Trickier Microsoft, McDonald’s are among the big companies that may stretch out tax bill The new U.S. tax law could throw a monkey wrench into a method many analysts and investors use to gauge the strength of companies’ earnings. A provision of the tax… Continue reading Earnings and Revenues Continue To Set Records
OPEN Commitment of Traders Analysis For February 9, 2018 On February 9, 2018, the Commodity Futures Trading Commission (CFTC) released the Commitments of Traders (CoT) statistics for Tuesday, February 6, 2018. Click on the open button above for some charts and a few short webcasts noting some of the data we found interesting… Continue reading CoT Webcasts For February 9, 2018
Bloomberg – Bond Traders Smash Fed-Hike Odds Lower as Stocks Whipsawed Bond traders and the Federal Reserve were almost perfectly in sync about the pace of policy tightening this year, until the rout in stocks shook things up. The interest-rates market is signaling just 2.3 Fed hikes in 2018, down from 2.76 a week ago,… Continue reading Timing The Fed Hikes
Bloomberg – The U.S. Junk-Bond Market Just Had Its Worst Week in Two Years A selloff in the market for speculative-grade corporate bonds accelerated amid turmoil in the stock market, handing investors their worst weekly loss since the oil slump two years ago. The bonds lost 1.5 percent on the week, the worst performance since… Continue reading Junk Bonds Take A Hit
The Financial Times – Why volatility is here to stay The ending of the post-crisis era of central bank stimulus means three things for markets: volatility is here to stay, deleveraging will continue and no asset class is immune to the convergence between ultra-easy financial conditions and strong global economic fundamentals…The diminishing risk of persistently… Continue reading All Things VIX