Bloomberg View – Barry Ritholtz: Echoes of the Black Monday Crash of ’87 There are things to learn from that debacle. Just don’t overdo it. Most of the underlying factors that drove that meltdown were very different from today’s market structure. First and foremost among those differences is portfolio insurance. This was a product so foolish it is hard… Continue reading Lessons To Be Learned From Black Monday 1987
The Financial Times – Wall Street’s dismissal of bitcoin becoming harder ‘Fomo’ forces mainstream finance to pay heed to cryptocurrencies Fear of missing out, or “fomo”, is often said to be one of the most powerful psychological forces in finance. As retail investor interest in bitcoin and other cryptocurrencies has surged, investment professionals have often… Continue reading Cryptocurrency
Bloomberg – ‘Absolutely Crazy’ Stock Market Punishes Anyone Who Dares Sell At Credit Suisse Group AG’s prime brokerage desk in midtown Manhattan, the phone hardly seems to ring anymore. Its hedge fund clients don’t call about Donald Trump’s tweetstorms and the stock market or ask what to do when terrorists attack. And there was barely a whiff of panic when… Continue reading Deeply Connected Risks Across Asset Classes
Financial Times – IMF crunches the numbers for possible Venezuela rescue Move could require $30bn a year or more in international help The IMF has had no official relationship with Venezuela since Caracas cut off relations in 2007 and has not conducted an on-the-ground review in 13 years. Officials insist no rescue is imminent and publicly… Continue reading Venezuela is Alone in its Troubles
View PDF Comment Through Friday only 32 S&P 500 companies reported Q3 2017 results. This week well over 100 will report. The blended chart below shows 468 median estimates and 32 actual results. The next chart shows revenue growth rates.
The New York Times – Gasoline Buoys U.S. Consumer Prices, Underlying Inflation Tame U.S. consumer prices recorded their biggest increase in eight months in September as gasoline prices soared in the wake of hurricane-related production disruptions at oil refineries in the Gulf Coast area, but underlying inflation remained muted… Gasoline prices surged 13.1 percent last… Continue reading Inflation Watch – Hurricanes Skew Data Once Again
The Financial Times – Trump faces choice between upheaval and continuity at the Fed Donald Trump must choose between embracing continuity or propelling the world’s most important central bank into a potentially market-jarring change of direction when he decides on the next Federal Reserve chair. The Fed’s future leadership was one of the uncertainties lurking… Continue reading The Race For Fed Chair
The Wall Street Journal – Yellen Says Gradual Rate Increases Should Help Sustain Economy’s Growth Fed chairwoman says labor-market strength should lead to higher inflation next year Federal Reserve Chairwoman Janet Yellen kept the door open to another increase in short-term interest rates this year, but sounded a note of caution on still weak inflation in… Continue reading The Fed Continues To Promise Gradual Rate Hikes
Bloomberg Business – The Long-Awaited Fed Balance Sheet Taper Begins Today With Mortgages Today’s the Big Day for investors in U.S. mortgage-backed securities. After months of debate and conjecture about what’s become known as the Federal Reserve’s balance-sheet taper, the New York branch will announce at 3 p.m. its purchase schedule for a $4 billion per month roll… Continue reading Balance Sheet Reduction Begins
Bloomberg – Old Wall Street Is Losing the Battle Beneath the Surface of ETFs A hidden war is taking place within your exchange-traded fund, and some of the biggest names on Wall Street are losing out. Banks like Goldman Sachs Group Inc. have surrendered a once-lucrative type of market making amid an onslaught of regulation… Continue reading Wall Street Losing To ETFs?
Bloomberg.com – Consumer Sentiment in U.S. Unexpectedly Surges to 13-Year High U.S. consumer sentiment unexpectedly surged to a 13-year high as Americans’ perceptions of the economy and their own finances rebounded following several major hurricanes, a University of Michigan survey showed Friday. Comment The horizontal blue line above shows the 13-year high in consumer confidence. Stocks… Continue reading Consumer Confidence Still The World’s Most Useless Economic Indicator