Many times I have commented about the narrowness of the markets, the breakdown of “fail safe trading strategies,” and the intense concentration of funds into a handful of names. Yesterday Goldman further quantified this view stating the...
Led by financial and healthcare, equity markets declined the most in a month. Throughout the day many were asking what the possible catalyst is for the decline given positive movement on trade. Some speculated it was the inability of the S & P...
Friday a Bloomberg headline read One of Wall Street’s Most Poplar Trading Strategies is Failing, referencing the implosion of risk based parity models and Commodity Trading Advisors (CTAs) which have grown ...
It is widely accepted a major catalyst for the December rout was monetary policy and the Fed’s well telegraphed intentions of shrinking its balance sheet. ...
FRB Chairman Powell stated the healthy US economy has faced some “cross currents and conflicting signals” that officials in January decided warranted taking a patient approach to future interest rate changes. He stated with inflation pressures “muted” the FOMC decision last month to ...
Equities have traded to the highest level since November on trade optimism. Equities were also encouraged from Chinese policy that would focus on growth as opposed to leverage. Oil declined after the President tweeted that crude prices were too high. Several third tier statistics are...
Fortune Magazine commented in late January “Bond yields [are] historically low and inflation seemed negligible: Wages [are] going nowhere, companies dare not raise prices to avoid losing market share. Bond market vigilantes have been pounded into submission.” ...
Data posted yesterday was contradictory, perhaps the result of the shutdown. Weekly jobless claims unexpectedly fell to a four week low. Factory orders however declined more than expected. And then there were existing home sales which also missed their mark, the result...
In my view there is a distinct relationship between passive investing and politics. It was reported yesterday that BlackRock and Vanguard—the dominant purveyors of passive investing--captured 57% of net global equity inflows in 2018. Inflows however dropped 70% from 2017. Passive investing...
Equities surged on Friday on trade and consumer optimism. The markets ignored the controversies in Washington believing at this juncture DC is nothing but a freak show. Oil continued its advance, rising to three month highs on the belief that ...