What will be written about market history in 2018? There was the “too good to be true rally” in January followed by an early February plunge and then a rebound back to previous highs and now a massive melt down that is decimating asset values...
As widely expected the Fed increased the overnight rate by 0.25%. The Committee also lowered its projections for 2019 to two increases versus three. Consensus was between one and three rises for 2019. The FOMC stated “economic activity has been rising at a strong rate”...
US Treasury Secretary Mnuchin blamed volatility in equity markets partly upon high speed trading and the effect of the Volcker Rule. Mnuchin stated “in my opinion market structure has led to a lot more volatility, part of this is a combination of market presence of...
All will be glad to see the end of 2018. According to Deutsche Bank it has been the worst rout since 1901 with almost every asset class delivering losses. The Bank writes $14,889,930,106,680 in equity wealth has...
Has there been a massive change in sentiment? Small investors are the most bearish since mid-2013, a bearishness captured by the record outflow of $46 billion from US mutual funds and ETFs. There was also a near...
2018 is quickly coming to an end. As noted the other day this has been the worst year in the financial markets in over 100 years for as according to Deutsche Bank 89% of assets are down anywhere between 10% and 60%. Societe General wrote...
Many times I have commented the geopolitical changes are tectonic. Globally, the policies and politics that have dominated since the conclusion of WWII are under attack as the commoner feels abandoned by government. There is general distrust of all governments, the result of regulatory fiat...
Yesterday was the inverse of the day before. Strong gains evaporated following a public dust up between the President and Democratic Congressional leaders concerning funding for the Wall. The market then rebounded following comments from key Senate...
Many times I have commented about the outsized impact of algorithmic trading has had upon the markets. JP Morgan recently wrote 80% of equity volume is now the result of this type of momentum based trading and...
Yesterday a SEC official warned that passive investing may pose a threat to investors as many may be complacent about the inherent risks involved. Warren Buffet once quipped if one cannot withstand a 40%-45% loss, that person...