Global Asset Allocation Update – Thursday, March 16
There is no change to the risk budget this month. For the moderate risk investor, the allocation between risk assets and bonds is unchanged at 50/50. The Fed spent the last month forward guiding the market to the rate hike they implemented today. Interest rates, real and nominal, moved up in anticipation of a more […]
Why We Invested In Snapchat Before It Went Public
I could see this coming a mile away… Snapchat is already catching flak. Its parent company, SNAP, IPO’d less than a week ago. Founded in 2011, Snapchat is the photo-disappearing social media company with 158 million users who are typically between the ages of 18 and 24. Its IPO was the biggest tech IPO since […]
U.S. Fed Hikes Rates. Markets Volatile, But Who Is The Real Winner?
Markets moved sharply as the U.S. Fed announced the 25 basis points interest rate increase. Markets were volatile, but which market was the real winner? The answer will be surprising to most. First and foremost, when markets react in a volatile way on financial news, it is wise to wait a couple of days before […]
Inflation On The Rise – Will The RBI Still Cut Interest Rates?
The cost of living in India is rising – or so says the inflation data. Recent data showed India’s wholesale price index (WPI) inflation rose to its highest in more than three years. WPI rose an annual 6.55% in February, rising from previous month’s 5.25% increase. The surge was seen on the back of higher fuel, […]
Death, Debt, Devaluation And Taxes
Death: It comes to all of us, including empires, paper currencies and countries. Debt: The world is drowning in debt – $150 to $200 trillion. The U.S. government is sinking into a black hole of debt – $20 trillion official and another $100 – $200 trillion in unfunded obligations. Total U.S. debt securities exceed $40 trillion according to the St. Louis Federal Reserve. […]
Now That Everyone’s Been Pushed Into Risky Assets…
If we had to summarize what’s happened in eight years of “recovery,” we could start with this: everyone’s been pushed into risky assets while being told risk has been transformed from something to avoid (by buying risk-off assets) to something you chase to score essentially guaranteed gains (by buying risk-on assets). The successful strategy for eight years has […]
China Unexpectedly Tightens Monetary Policy
Following The Fed’s 3rd rate hike in 11 years, the PBOC decided, unexpectedly, to follow in the Fed’s footsteps, and tighten conditions by raising the interest rates on its open-market operations, the 7-, 14-, and 28-day reverse-repos, by 10bps each, to 2.45%, 2.6% and 2.75% respectively. That followed an increase of 10 basis points at the beginning […]
Breakout Trading Opportunities
Yesterday we talked about a form of breakouts that discovered and used by Nicolas Darvas Box trading that you can check out right here. This time around I want to highlight further the different forms of breakout trading. The S&P 500 bounced hard today and it is going to look to continue that momentum into […]
The Medium-Term Trend – Wednesday, March 15
The Fed remarked today that they will continue to maintain their large Treasury holdings for the time being rather than let them roll off as many investors expected. It is believed that by maintaining these large holdings, the Fed is keeping longer-term rates low. In other words, the Fed is focusing on promoting growth over […]
Hold Off On ProPetro’s Upcoming IPO
ProPetro (Pending: PUMP) filed an S-1/A with the Securities and Exchange Commission for its upcoming initial public offering. The company plans to sell 20 million shares at a marketed price range of $16 to $19, with an additional 3 million shares as an over allotment option for its underwriters. Of these shares, 47% are being offered by […]
