Category Archive: Finance, No picture
Why Public Debt Is A Problem — And Trade Deficits Aren’t
As the U.S. trade deficit has been widening for the fourth month running, markets and business experts appear once again bewildered by the events and unsure how to react to them. On the one hand, they had vehemently opposed the increase in trade tariffs and the trade war that has made headlines this year. But on the […]
Weekly Recap: Tracking Error And The “Mix Versus Integrate” Debate
Video length: 00:13:53 This week Ryan and Jack discuss several important topics. First, they discuss the tracking error associated with trend-following strategies. Second, they chat about a paper by researchers from Goldman Sachs, “Constructing Long-Only Multifactor Strategies: Portfolio Blending vs. Signal Blending.” Paper Links: How large is the tracking error created by trend following? Constructing […]
Consumer Products Industry Outlook: Soft Margin Blurs Prospects
The Zacks Consumer Products – Staples industry comprises manufacturers, marketers and distributors of a variety of consumer products, including personal care items, stationery, bed and bath products, cleaning equipment and household goods like kitchen appliances, cutlery and food storage among others. Some of the industry participants provide batteries and lighting products, while the space also includes food […]
Reasons To Avoid The Stock Market
Deflation seems to be the primary theme in the market as we come to the end of October. The last time the Dow Jones saw its BEV value at -8% was in early July of this year (BEV chart below). It took fifty-three NYSE trading sessions for the bulls to work up to a new […]
Weekly Economic And Political Timeline – Sunday, Oct. 28
This week is likely to see more activity than last week, as there is central bank input due for both the Japanese Yen and the British Pound, plus U.S. Non-Farm Payrolls data. The market is likely to be most active on Friday. U.S. Dollar It will be an important week for the U.S. Dollar, starting with […]
IBM To Acquire Red Hat For $190 Per Share
IBM (IBM) and Red Hat (RHT) announced that the companies have reached a definitive agreement under which IBM will acquire all of the issued and outstanding common shares of Red Hat for $190 per share in cash, representing a total enterprise value of approximately $34 billion. With this acquisition, IBM will remain committed to Red […]
Euro Forecast: After ECB, Downside In Focus As Italian Issues Fester
Fundamental Forecast for EUR/USD: Bearish The Euro fell sharply across the board after ECB President Draghi’s press conference on Thursday, as it was revealed that while the QE program will end in December, that doesn’t mean other programs couldn’t be started up (i.e. TLTROs). Amid volatility in global bond and equity markets, the safe haven crosses (EUR/CHF,EUR/JPY, […]
The Market Drinks Brandy For Hypothermia
Avalanche victims allegedly drank the brandy in the St. Bernard’s barrel to say warm while they waited for rescue. After this past week, I am sure many market avalanche victims did the same. The dog is of course, the brown earth dog, or the symbol in the Chinese New Year for 2018-2019. And he comes not only […]
Happy (not So Much) Anniversary
Historically, looking back over the past 20 years, October is the best performing month with an average return of +2.49%. However, as we pointed out in our October 7 edition of Market Outlook, when things don’t pan out according to historical averages markets get hysterical. Stock market crashes in October happen just before Halloween and […]
AUDUSD Weekly Analysis – Sunday, Oct. 28
AUDUSD extended its downside movement from 0.8135 to as low as 0.7020. As long as the price is below the bearish trend line on the daily chart, a further decline could be expected and the next target would be at the 0.6900 area. Near term resistance is at 0.7159; a breakout of this level could […]
