Bloomberg.com – What Hedge Funds Will Do After the Hedge Fund Model Dies As long-short strategies take a beating, managers see niches like private debt as fuel for future returns. The long and short on hedge funds is that long and short isn’t working so well anymore. That’s the rather simple strategy that built… Continue reading The Twilight Of Hedge Funds?
The Wall Street Journal – Ben Eisen: Volatility Is Low But Ambiguity Is Sky High Two academics are rolling out a new measure of market fear that suggests investors aren’t nearly as complacent as they seem. The gauge of so-called ambiguity, meant to chronicle the degree of uncertainty investors have in the probabilities they use to… Continue reading The Ambiguity Index
The Wall Street Journal – The Force Behind Bitcoin’s Meteoric Rise: Millions of Asian Investors Retail investors, mostly in Asia, are pushing the price of bitcoin to new heights Various forces have stoked Asia’s bitcoin fever. While individual wealth has been growing in recent years, particularly in China and South Korea, lucrative investment opportunities… Continue reading Who Buys Bitcoin?
The Times (UK) – Don’t try to short the bitcoin bubble, warns Nassim Nicholas Taleb A world expert in financial options has warned that those hoping to use futures contracts to bet against the spiralling price of bitcoin were doomed to lose money. Nassim Nicholas Taleb, an authority on derivative markets, said that there was “no… Continue reading More Bitcoin Talk
The Financial Times – Commodity assets under management at highest in 4 years Rising oil prices and stronger fund inflows into energy resources drive sector A rising oil price and robust global growth has helped drive the amount of money invested in commodities to the highest in more than four years, according to Citigroup. Assets under… Continue reading Interest In Commodities Rising
FT Alphaville – Both left and right could make big changes to how the Fed operates in the next recession The composition of the Fed will have changed dramatically by the time of the next recession. If the right-leaning economists take over, you can expect innovations to alter or eliminate the lower bound on nominal interest… Continue reading How The Fed Might Change
Bloomberg.com – A Manager of $42 Billion Fears Bubble in World’s Biggest Stocks Nordea manager says Amazon, Alibaba are overvalued stocks Nordea Global Stable Equity has delivered 12% average return The world’s biggest companies could be hiding the biggest risks. That’s because companies such as Amazon.com Inc. and Alibaba Group Holding Ltd are overvalued, according to Robert Naess, a portfolio… Continue reading Your Daily Dose Of Scary Talk
The Financial Times – Lawrence Summers: US economy faces a painful comedown from its ‘sugar high’ Signs of strength are largely unrelated to government policy The tax-cut legislation now in committee on Capitol Hill exacerbates every important problem it claims to address, most importantly by leaving the federal government with an entirely inadequate revenue base. The… Continue reading Larry Summer Moderates
Wall Street Journal – Emerging Markets Barrel Ahead Despite Tightening Fed Sector is enjoying strong global growth, stabilizing commodity prices and improving domestic fundamentals The reversal in fortunes comes as emerging markets are enjoying what some analysts call a “Goldilocks” moment—a combination of strong global growth, stabilizing commodity prices and improving domestic fundamentals. This has fueled… Continue reading Central Banks Won’t Rock the Emerging Market Boat
The Financial Times – Fed rates rise signals more increases next year Impending tax cuts help to support sunny outlook for US economy The Fed’s September forecasts pointed to three more rate increases in 2018, and a big question for Wednesday is whether policymakers stick with that outlook or pencil in more rises. Ms Yellen… Continue reading Rate Hike Projections: The Market vs. The Fed
Bloomberg – GOP’s Taxing Question: Will Middle-Class Folks Notice Their Cut? Americans didn’t notice similar measure in 2009, poll showed The 2009 economic-stimulus bill contained a one-year tax break worth $800 for married couples in 95 percent of working households — a little over $15 a week. A February 2010 poll found that just 12 percent said their… Continue reading Investors Should Be Careful Chasing Flows Into High-Tax Industries