Bloomberg – The Meltdown in Venezuela’s Currency Is Deepening The black-market rate for the bolivar plunges beyond 8,700 per dollar for first time The meltdown in Venezuela’s currency is deepening as a crippling dollar shortage and a threat of oil sanctions take their toll on the economy. The black-market rate for the bolivar traded weaker… Continue reading Venezuelan Hyperinflation
OPEN Commitment of Traders Webinar – A Sell In The Euro In our latest webinar, Jim Bianco looks at the latest Commitment of Traders report.
Bloomberg View – Danielle DiMartino Booth: This Recovery Isn’t All That Resilient When adjusted for inflation, credit card usage has grown faster than incomes for 18 months. Are Federal Reserve stress tests leading economic indicators? That certainly seems to be the case. Just ask Capital One Financial Corp. As of the first quarter, credit card… Continue reading Poking Holes At The Recovery
Bloomberg – The Great Rotation May Finally Be at Hand Individual, systematic investors may spur swing out of bonds The great rotation may be near. Bets on the flow of money out of bonds and into stocks have misfired this year as low yields have kept the global debt party going. But there’s a sign… Continue reading The Path to the Great Rotation Has Many Road Blocks
The Financial Times – Investors turn from US to European stocks Investors added more than $3bn to dedicated European equity funds in the week to July 19, lifting inflows for the year to more than $26bn, according to data provider EPFR. With the backdrop of a quickening economic recovery — providing central bank policymakers an… Continue reading Political Stability Drawing Investors to European ETFs
Comment Jim Bianco was on CNBC yesterday discussing monetary policy. To view the interview, click on the image above. To view any of our recent interviews, click here. At the end of the interview, the subject turned to the Trump trade. Jim said the overlooked but important part of the trade is the regulatory rollback… Continue reading Global Monetary Policy
OPEN Webcast – Acknowledging That Tech Is The Future Of Business In our latest webinar, Jim Bianco takes a deeper look at his post titled Acknowledging That Tech Is The Future Of Business. Summary The Wall Street Journal details how the giant tech companies are transforming American business models. The market believes this as… Continue reading Acknowledging That Tech Is The Future Of Business Webcast
Janus – Bill Gross Investment Outlook: Curveball While today’s yield curve would require only an 85 basis increase in 3-month Treasuries to “flatten” the yield curve shown in Chart 1, an 85 basis point increase in today’s interest rate world would represent a near doubling of the cost of short term finance. The same increase… Continue reading Bill Gross Argues For Adjusting The Yield Curve As A Recession Indicator
Bloomberg – S&P 500’s Biggest Pension Plans Face $382 Billion Funding Gap People who rely on their company pension plans to fund their retirement may be in for a shock: Of the 200 biggest defined-benefit plans in the S&P 500 based on assets, 186 aren’t fully funded. Simply put, they don’t have enough money to… Continue reading The Pension Funding Gap
The Financial Times – Loan market rejects find a home in high-yield Fund managers’ hunt for income boosts demand for European junk bonds Companies with troubled histories in the loan market are turning to junk bonds for financing, taking advantage of high-yield fund managers’ need to deploy a wall of cash that has been returned to… Continue reading Getting Financing In The Junk Bond Market
Bloomberg – Mohamed El-Erian: The Upside and Downside of Liquidity-Driven Markets The markets’ overall sense of “goldilocks” — not too hot, not too cold — explains much of the gap between buoyant stock indexes and lagging economic and policy fundamentals. Growth may be low, but the markets perceive it as relatively stable. The Trump administration… Continue reading Liquidity’s Role In The Stock Rally