Author Archive: Jeremy Parkinson
Richard Thaler On CUBA: “There Is No Rational Explanation”
Below is a new interview with Richard Thaler, published in today’s issue of the Swiss Business newspaper Finanz und Wirtschaft by editor Christoph Gisiger. Excerpts from the interview re-printed with permission. What does that mean applied on the financial markets? Are investors always behaving rational? Let me give you an example: There is this closed-end […]
2018 IPO Prospects: Spotify To Test Direct Listing
According to the Recording Industry Association of America (RIAA), the US streaming music accounted for a majority of the retail music industry revenues. For the first half of 2017, retail revenues grew 17% to $4 billion, of which streaming services accounted for $2.5 billion and grew 48% over the year. Revenue from listeners paying to listen […]
It’s Time For The Fear Trade To Move Gold Prices
The price of gold and gold mining stocks were very competitive in 2017. The yellow metal ended the year up a little more than 13 percent—its best year since 2010—while gold stocks, as measured by the NYSE Arca Gold Miners Index, gained more than 11 percent. All of this occurred even as large-cap stocks regularly closed […]
S&P 500 Still Far From A Bubble
After a strong gain in 2017, investors are worried about 2018. One concern is that the good times can’t last forever. For investors, 2017 provided many good times. For worriers, the low volatility and steady gains of last year signal bad times are likely in 2018. The worriers have a point. It’s true that good times can’t last forever. […]
E Santa Delivers “January Effect”
After solid gains in 2017, the U.S. indices are off to a big start in 2018. While there are lagging expectations about the longevity of stocks this year, it is generally not a wise move to fight the trend. The so called “January effect” is a seasonal increase in stock prices during the month of […]
EC Equity Reallocation Between US, Developed And Emerging Markets
Within the equity allocation of portfolios, with tax awareness, we are taking these actions in discretionary accounts, and are recommending these actions in advice & consent accounts, and in coaching relationships: Underweight US stocks (preferably to less than the 52% world weight) Overweight non-US Developed Mkt stocks (preferably to more than the 39% world weight) […]
EUR/USD: Is Rally Nearing An End? – Credit Agricole
EUR/USD rallied and topped 1.20, staying there for quite a while. It now seems that it is finding it hard to hold onto these levels. Is it on its way down? Here is the view from Credit Agricole: Here is their view, courtesy of eFXnews: Credit Agricole CIB FX Strategy Research discusses the EUR outlook […]
Pandora Slides As Former Bull Cuts Rating, Halves Price Target
Shares of Pandora (P) are sliding after Morgan Stanley analyst Benjamin Swinburne downgraded the stock to Equal Weight from Overweight as he believes growing ad revenue in 2018 is no longer a given as the company faces engagement and monetization challenges. Moving to the sidelines In a research note to investors this morning, Morgan Stanley’s […]
Monetary Policy Madness?
In a recent newsletter John Mauldin wrote: “It is monetary policy madness to raise rates and undertake quantitative tightening at the same time.” However, this is exactly what the Fed plans to do in 2018. Has the Fed gone mad? If mad is defined as diverging in an irrational way from normal practice then the answer to […]
Canadian Dollar Extends Gains, US Dollar Eyeing Fed Comments
Talking Points: Aussie Dollar corrects lower as speculative net-short positioning swells Canadian Dollar continues to build higher after blockbuster jobs report US Dollar might find a bit of a lifeline in comments from Fed officials The Australian Dollar underperformed in Asia Pacific trade, falling against all of its top currency counterparts. A singular catalyst for the shift was not […]
