What will be this week’s prevailing narrative? The decline in the number of deaths and cases? The extent of the economic calamity via the government mandated shutdown? The prevalence of a “second wave” in states that have decided to partially reopen?...
What makes today different is the speed of the unrelenting decline where a liquidity issue is perhaps morphing into a solvency issue. The Federal Reserve threw everything in including the kitchen sink to perhaps to no avail.
...It is ugly!!! The S & P 500 just had its fifth worst percentage decline in history. It was the greatest percentage drop since October 19, 1987. One large trading firm commented that they have tried everything to appease ...
Yesterday Bloomberg commented about the propensity of ETFs to go long technology and short energy, a trade that I had rhetorically commented appeared to be occurring. As noted several weeks ago the capitalization of Apple is greater than the ...
An argument can be made the world’s sovereign debt markets just got a lot riskier as Sweden just ended a half of decade of negative rates. The question at hand will other central banks follow their lead? Everything in the world is priced...
Bloomberg writes over 1000 ETFs have been closed with 97 closing thus far in 2019. The reason...
Many times I have commented about the lack of liquidity in the markets, the result of regulatory fiat, changes in market trading structures and the massive move to passive investing. ...
Some have commented that White House statements indicating it has no plans to delist Chinese companies helped offset the negative sentiment from Chinese remarks that it has narrowed the range of topics to be discussed. I am certain the interpretation of the upcoming meeting...
In my view the race to bottom regarding asset management fees is adding to market illiquidity. Bloomberg writes there is approximately $8 trillion between ETFs and passive index funds. There is little barrier to entry and hundreds of companies are ...
There is an old market axiom that the markets can remain irrational longer than one can remain solvent. Bank of America commented yesterday that today’s market is the most crowded trade in history. The environment is groupthink on ...