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Even Jim Cramer Saw This Coming From A Mile Away

August 21, 2017

The Financial Times – Insider trading schemes using encrypted apps alarm FBI The Federal Bureau of Investigation is growing concerned that Wall Street traders are turning to encrypted apps to hide illicit communications from internal compliance programmes and regulators. Encryption is “a growing problem overall,” John Casale, an assistant special agent in charge of complex… Continue reading Even Jim Cramer Saw This Coming From A Mile Away

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Cartoons

August 21, 2017

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Newsclips

Risk-off Just Ain’t What It Once Was

August 18, 2017

The Wall Street Journal – Dow Tumble Ends Calmest Stretch in 22 Years The S&P 500 broke its 58-day streak without a 1% move on Aug. 10 when it fell 1.4% as tech stocks underperformed. The Dow industrials only dropped 0.9% that day. On Thursday, the S&P 500 was down another 1.5%. The tech-heavy Nasdaq Composite… Continue reading Risk-off Just Ain’t What It Once Was

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Is The Fed’s “Model Era” Ending?

August 18, 2017

Bloomberg.com – The Fed Is Asking Questions, Not Providing Answers It would be cause for concern if policy makers acted too confident. The economy is not following models. By signaling that it won’t touch interest rates again until December, it’s bought itself time to have a longer — and much needed — conversation about inflation. Good.… Continue reading Is The Fed’s “Model Era” Ending?

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Newsclips

How DC Affects Markets

August 18, 2017

Comment Jim was on CNBC yesterday discussing Washington D.C.’s impact on the markets. The conversation centered around the fate of Gary Cohn. If Cohn leaves the administration, that would effectively end his chances of becoming the next Fed chief. The chart below shows the odds of the next Fed chief according to the Predictit betting… Continue reading How DC Affects Markets

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Improving Sales Not Enough for Struggling Retailers

August 18, 2017

    OPEN  Improving Sales Not Enough for Struggling Retailers In our latest webcast, Peter Forbes takes a look at his post titled Improving Sales Not Enough for Struggling Retailers. Retail sales improved and with positive revisions will brighten the growth outlook for the broad economy. Calmer seas will not lift all boats though as competition… Continue reading Improving Sales Not Enough for Struggling Retailers

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Newsclips

Stock Market Breadth

August 18, 2017

Bloomberg – S&P’s Biggest Drop Was a Selloff Waiting to Happen Is the market’s latest fit of nerves normal restlessness, or something worse? Based on an analysis that considers not political sensitivity but the breadth of share moves, don’t be surprised if it’s the latter. Take the S&P 500’s bounce starting a week ago, in… Continue reading Stock Market Breadth

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Quant Funds

August 18, 2017

Bloomberg View – How the Next Quant Fund Crisis Will Unfold Institutional quant hedge funds have addressed the risk issues that caused 2007 losses, but the newer retail products cannot. Most everyone knows that this month marks the 10th anniversary of the start of the biggest financial crisis since the Great Depression. There was another significant event… Continue reading Quant Funds

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Money Managers Giving Up On Junk Bonds

August 18, 2017

Bloomberg Business – The Growing List of Money Managers Cutting Their Exposure to Junk Bonds Investors with more than $1 trillion have reduced holdings Investors overseeing about $1.1 trillion have been cutting exposure to the world’s riskiest corporate debt as rates grind too low to compensate for potential risks. Even after a selloff last week amid… Continue reading Money Managers Giving Up On Junk Bonds

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Natural Gas Tankers Now Being Used As Storage At Sea

August 18, 2017

Bloomberg – The Gas Tankers Lurking at Sea Looking for a Better Deal When the tanker Provalys left Louisiana for Chile last month with a full load of U.S. liquefied natural gas, it sailed around South America instead of taking a shortcut through the expanded Panama Canal. Not only may the route be cheaper without… Continue reading Natural Gas Tankers Now Being Used As Storage At Sea

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Active Management’s Underperformance Is Nothing New

August 18, 2017

Bloomberg – Why This Fund’s 256,766% Return Still Doesn’t Beat the Market Opened in the Roaring Twenties, when Calvin Coolidge was president, the Massachusetts Investors Trust has weathered 16 recessions, roughly 20 bear markets and worse. What it hasn’t done is beaten the stock market over the long haul. Sure, the fund has had plenty… Continue reading Active Management’s Underperformance Is Nothing New

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More Concern That Passive Investing Fails To Properly Allocate Capital

August 18, 2017

The Wall Street Journal – World’s Biggest Pension Fund Wants to Stop Index Trackers Eating the Economy It makes sense to be a free rider on someone else’s work, but once everyone realizes that, there is no one left to do the work. In markets, the work is identifying which companies will do best, which… Continue reading More Concern That Passive Investing Fails To Properly Allocate Capital