New York Times – ‘False Peace’ for Markets? A Trader is Betting Millions on It Betting against a flare up of such turmoil has been one of the longest-running and most profitable trades in recent financial history. Mr Cole, who opened Artemis Capital to outside investors in 2012, is taking the opposite, arguing with the… Continue reading VIX Returns to Lows, Short Vol ETF Trade Lingers
Bloomberg Markets – U.S. Household Wealth Rises $1.7 Trillion to Another Record Highlights – Net worth for households and non-profit groups rose by $1.7t q/q, or 1.8%, to $96.2t, according to Fed’s financial accounts report, previously known as flow of funds survey – Value of financial assets, including stocks and pension fund holdings, increased by $1.2t –… Continue reading Household Net Worth Hits Another Record
Bloomberg Business – Corporate America Has Amassed a Record Amount of Cash Corporate America has never been in better shape to put its cash hoard to use on everything from investment to acquisitions, share buybacks and dividends. Or just hold on to it. Non-financial companies’ liquid assets, which include foreign deposits, currency as well as… Continue reading The Myth Of Cash On The Sidelines
MarketWatch – Jim Rogers says ETF holders will get mauled by ‘the worst’ bear market ever We’re diving right into our call of the day, which comes from Jim Rogers. In a sweeping interview with RealVision TV, the veteran investor warns another bear market is coming, and that it will be “horrendous, the worst.” It’s the level… Continue reading Everyone Is Bearish!
Bloomberg Business – Managers of $3 Trillion Buy Dollar Amid Worst Rout in Decade The dollar has been mired in its worst slump in a decade, battered by political drama in Washington and shifting bets on central-bank policy. Managers of $3 trillion say the carnage has gone on long enough. Mellon Capital Management Corp., State Street Global… Continue reading Bulls vs Bears In The US Dollar
Bloomberg View – Daniel Moss: Why Investors Doubted the Fed’s Clear Signals In recent years, markets were better at forecasting interest-rate actions than the central bank was. A lot of attention has been devoted to inflation misbehaving this year. The global growth surprise doesn’t seem to have burned up the same amount of intellectual energy among Fed watchers. That’s disappointing given the global nature… Continue reading Were Investors Too Dismissive Of The Fed’s Signals?
The Wall Street Journal – Fed Paves the Way for the ECB to Follow For the ECB, the Fed looks to be making the right decision, as the dollar may now be less of a one-way bet against the euro than it has been in recent months. That eases the way for ECB policy makers… Continue reading Will The ECB Follow The Fed’s Lead?
The Wall Street Journal – James Mackintosh: $2 Trillion Later, Does the Fed Even Know if Quantitative Easing Worked? At the moment, markets are functioning perfectly well and sentiment if anything is too positive, judging by high valuations for U.S. equities and junk bonds. Reversing QE is thus likely to have less effect now than it would… Continue reading Questioning The Effectiveness Of QE
The Wall Street Journal – OPEC’s ‘Problem Children’ Are Holding Down Oil Prices The Organization of the Petroleum Exporting Countries is scrambling to contain output from its strife-torn members Libya and Nigeria, where surging production could threaten to derail the oil cartel’s efforts to withhold crude supply and raise its price. Libya and Nigeria were exempt from OPEC’s… Continue reading Oil Production In Libya And Nigeria Complicate OPEC’s Plan
Bloomberg View – There’s a New Yield Curve to Predict Recessions High-yield credit markets are a now a better barometer of economic conditions than Treasuries. The spread between two- and five-year Treasuries is less than half the average since the end of the global financial crisis, at 41 basis points versus a mean of 90 basis… Continue reading Using High Yield Credit Markets To Predict Recessions
The CoinTelegraph – South Korea in Centre of Bitcoin Universe As It Passes China in Bitcoin Trading After the massive upheaval in the Bitcoin market over the past weeks because of negative news from China, it appears that Bitcoin transaction volume has shifted out of China. In a move that should not be surprising, South Korea has passed China… Continue reading South Korea Takes Over China As The Bitcoin Haven
CNN – Warren Buffett’s Favorite Market Indicator Says Stocks Are in Trouble When the value of all stocks is 80% or less than the size of the economy, “buying stocks is likely to work very well for you,” Buffett wrote in an article for Fortune back in 2001. But when total equity value exceeds the size of the economy and… Continue reading The Overvalued Stock Market