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Newsclips
“Is This The World We Now Live In” Replay
December 1, 2017
Replay of our November 30 conference call
Newsclips
A Sugar Rush from Looser Financial Conditions
December 1, 2017
A Brookings study finds excess credit growth and loose financial conditions foster unsustainable growth.
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Tax Plan Finally Boosting High Tax Stocks, May Offer Opportunities in Munis
December 1, 2017
Bloomberg – Muni Buyers Handed Holiday Bounty as Governments Rush to Market Issuance may break $54.7 billion monthly record seen Dec. 1985 For municipal-bond buyers, December is providing the chance for a rare holiday shopping spree. Spurred by legislation in Congress that would end the tax-exemption from a big share of the market starting next… Continue reading Tax Plan Finally Boosting High Tax Stocks, May Offer Opportunities in Munis
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Economists Remain Optimistic
December 1, 2017
Detailing the Citi Surprise Index
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Shrinking Implied Volatility And Its Impact On Markets
December 1, 2017
Bloomberg View – Matthew Winkler: It’s the Yellen Rally, Not the Trump Trade In the market for U.S. stocks, implied volatility is shrinking to little more than 9 percent, another record low. The average reading for Yellen’s Fed is 14 percent, substantially less than the 22 percent and 19 percent that prevailed, respectively, when Bernanke and… Continue reading Shrinking Implied Volatility And Its Impact On Markets
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More On U.S. Shale
December 1, 2017
Bloomberg Markets – Trouble Ahead: MIT Says U.S. Shale Boom Is Vastly Overblown In the past three years, oil prices have been stuck around $50 a barrel on the back of rising shale output in the U.S., while natural gas has been selling for an average of less than $3 per million British thermal units. (As… Continue reading More On U.S. Shale
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OPEC Continues To Cut Production
December 1, 2017
Bloomberg Gadfly – Liam Denning: OPEC’s Endless Hot-and-Cold Shower OPEC has moved prices significantly in the past, notably after the financial crises of 1997 and 2008. Controlling them has proven much tougher, and the inability to meet the challenges of China’s demand surge and later Arab uprisings spurred prices to levels that destroyed demand and fueled… Continue reading OPEC Continues To Cut Production
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Tax Bill Now Priced In?
December 1, 2017
CNBC – Market not topping out, but it needs tax bill to keep going The stock market’s strong rally Thursday isn’t a sign it’s near a top yet, strategists say, but it could see a pull back if tax legislation doesn’t proceed as expected. Stocks aren’t topping out yet, but there could be a pullback if… Continue reading Tax Bill Now Priced In?
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High Yield ETF Flows
December 1, 2017
The Financial Times – Fund outflows from junk debt moderates as market rallies Investor outflows from junk bond funds moderated during the final week of November, as the market for speculative rated debt showed signs of stabilising after a sudden rout earlier last month. The two biggest exchange traded funds that track high-yield bonds, JNK and… Continue reading High Yield ETF Flows
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The Risks Of Passive Investment Products
December 1, 2017
Bloomberg View – Mohamed El-Erian: The Risky Lure of Passive Investment Proxies The most commonly-cited reasons for the surge of interest in passive investing products are fee savings and skepticism about the ability of active funds to outperform. Most likely, these two factors explain a dominant part of the record flow into an ever-widening range of… Continue reading The Risks Of Passive Investment Products
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Momentum Stocks’ Great Year
December 1, 2017
Bloomberg Markets – Alarm Bells Are Sounding Over Gigantic Run-Up in Momentum Stocks Investors betting on momentum, or the continuation of existing market trends, have made a killing thus far in 2017, with indexes tracking the strategy in the U.S. and Europe at or near record highs. Now, firms including Morgan Stanley and JPMorgan Chase &… Continue reading Momentum Stocks’ Great Year