Bloomberg View – For Europe’s Central Bank, Better to Be Flexible Than Sorry The first principle is that the ECB has gone “data dependent” over its quantitative easing. Whereas previously central bankers had said that bond purchases would continue until the end of 2017, for now they appear more reluctant to tie their hands over what… Continue reading The ECB Has Gone Data Dependent
Bloomberg.com – Hedge-Fund Manager Crispin Odey Says It’s Now More Likely the Market Will Crash Pound drop ‘dangerous’ for U.K. retailers: hedge fund manager Central banks ending QE will impact credit cycle, Odey writes “This time they are doing the reverse,” which is likely to exacerbate the negative trend, the London-based hedge fund manager wrote. “All… Continue reading Struggling Manager Looking For A Crash
Comment On FRIDAY, July 14, 2017 at 9 AM CT (10 AM ET, 7 AM PT and 15:00 BST) Bianco Research, in conjunction with Arbor Research & Trading, will be hosting a webcast/teleconference moderated by Jim Bianco. Join us Friday as we discuss the recent rise in interest rates, the role of central banks and… Continue reading Webcast Friday (please note the date change): What’s Next For Interest Rates After Their Recent Rise?
Alhambra Investments – BOND ROUT!!! Nothing ever goes in a straight line The problem is, however, largely one of time. At some point, the economy that “should be” has to be recognized for what it always was – a fantasy devotion to economics that was never established in real world operation. When this last happened in… Continue reading Bond Rout?! Nah, Not Yet
Comment Yesterday Jim talked with Bloomberg radio about interest rates, the Fed and budget issues in Illinois. Mauldin Economics – John Mauldin: Prepare for Turbulence To understand what will be the mindset of central bankers all over the world during the next financial crisis, I can think of no better illustration than a debate that was… Continue reading Central Bankers Don’t Trust Capitalism
Bloomberg – New ETFs Bet Against the Shopping Mall by Shorting Traditional Retail Stores Speculation on mall failures has grown increasingly crowded Wagering on the demise of the American mall is about to get a whole lot easier using exchange-traded funds. A trio of new ETFs proposed by ProShare Advisors LLC take positions against retailers that are… Continue reading Just Add Leverage – Brick and Mortar vs E-Commerce ETFs
Financial Times – Fears of trouble if tide goes out on emerging market bond ETFs Flood of money into this debt could later cause problems in a falling market The first thing Michael Cirami looks at when he gets to his desk each morning is several pages of data showing daily flows into and out of… Continue reading Emerging Market Debt Investors Getting Restless
Bloomberg – Gold buyers flee a month after their most bullish bet of ’17 A month ago, money managers were the most optimistic on gold this year. Now, they can’t seem to unload bullion fast enough. Hedge funds’ net-long positions, or the difference between bets on a price increase and wagers on a decline, fell last… Continue reading Hedge Funds Exit Bullish Gold Trades
Bloomberg – Australia’s Central Bank Uses Obscure Rule to Justify Rate Stance Australia’s central bank is relying on an obscure piece of legislation dating back to World War II to justify keeping interest rates steady: its rarely-discussed third objective of monetary policy. Traditionally, the Reserve Bank of Australia is seen as having a dual mandate of maintaining… Continue reading When Data Won’t Cooperate, Central Banks Just Say, “It’s For Your Own Good!”
The Guardian – Mohamed El-Erian: How healthy is the global financial system? As an observer and participant in global capital markets, three of these risks stand out to me. First, as more carefully regulated banks have ceased certain activities, voluntarily or otherwise, they have been replaced by non-banks that are not subject to the same supervisory and… Continue reading El-Erian Offers His Opinion On Regulation In The Banking Industry & Big Data
The Wall Street Journal – Investors Beware: Bond Prices Are Threatening the Stock Market Rising bond yields threaten to undermine the case for holding expensive stocks, and shareholders should be worried. It has been “TINA” for the last seven years. That means “there is no alternative” but to buy stocks with bond yields so low.… Continue reading More On Stocks vs. Bonds