With Crude Speculators ‘All In’, OPEC Event Looks Risky
The phrase ‘buy the rumor, sell the news’ is overused on Wall Street for a reason. Prior to significant events, prices tend to rise on rumors and then drop sharply following a highly anticipated event. Looking at WTI, the last OPEC meeting (May 25, 2017) is a great example of this pattern. Rumors of deeper […]
SocGen: Asian Equities Are So Awesome, A China Minsky Moment Is “Manageable”
If we’re going to discuss Asian equities in the context of “awesome”, we should begin with Tencent. Tencent, which has more than doubled this year, drove Asian stocks higher during Tuesday’s trading session. Trading on the main board of the Hong Kong Stock Exchange hit a 28-month high of HK$157 billion with one fifth of […]
Is Free Market Capitalism Bad Economics?
The “fatal flaw” of neoliberalism, which “denotes a preference for markets over government, economic incentives over cultural norms, and private entrepreneurship over collective action,” is that it simply is “bad economics,” according to a new Guardian article penned by Harvard economist Dani Rodrik. The one size fits all formula can be overly simplistic but that could be said […]
Corporate Cash Mountain Grows Makes Apple World’s Largest Hedge Fund
According to an analysis by credit rating agency Moody’s, cash and liquid investments at US non-financial companies are poised to rise about 5% to $1.9 trillion at the end of 2017 — a new record. This cash pile is concentrated with five key holders, which together will own 35% (Apple will account for 15%) of the total, up from […]
S&P 500 Hot Streak Extended
With today’s new highs, the S&P 500’s current bull market has extended to 3,179 calendar days dating back to March 9th, 2009. To surpass the record length for a bull market (20%+ rally without a 20%+ decline), there’s still a long way to go, however, since the longest bull lasted 4,494 days from 12/4/1987 through […]
Are Markets Really As Calm As They Seem?
Indicators for financial market “stress” have reached their lowest levels in decades. For instance, stock market volatility has never been this low since the early 1990s. Credit spreads have been shrinking, and prices for credit default swaps have fallen to pre-crisis levels. In fact, investors are no longer haunted by concerns about the stability of […]
E Is Gold’s Relationship With Key Market Indicators Changing?
Gold perhaps retains its reputation as the perfect store of value, especially during tough economic periods. Historically, the yellow metal has demonstrated its ability to act as a haven when stock markets are bearish. As such, gold prices tend to rally during a recession and fall during bullish markets. The price of gold has also […]
Market Continues To Consolidate Following Thursday’s Rally
My Swing Trading Approach Looking to increase my stop-loss on my profitable positions today, while adding 1-2 new long positions. Indicators VIX – Continues to decay off of those highs reached last Wednesday. Dropped 6.8% down to 10.65. I expect we’ll see sub-10 again very soon. T2108 (% of stocks trading below their 40-day moving average): Day […]
Places To Avoid For Commercial Real Estate Investment
Recently I have indicated I see a lot of problems in asset markets despite the economic acceleration in Europe, Japan, and the US. For example, there is a liquidity mismatch in high yield bond and leveraged loan markets and technology shares are priced for perfection. Commercial real estate is also a problem that I want to highlight briefly […]
