The ECB did quite a lot in terms of new stimulus, with moves ranging from the expected ones such as deposit rate cut through significant beats of expectations (33$ more QE) to big surprises such as cutting the main lending rate. All this was enough for a 150 pip fall in the euro but it […]

Many of my readers have written to say they made a killing trading Valeant (VRX) since I told you the stock was “Everything That’s Wrong with the Markets” (Oct. 15, 2015). That trade has certainly gone our way, as VRX crashed from $168.87 to close at $61.31 on Friday. Those VRX March 18, 2016 $50 […]

ECB chair Mario Draghi delivered big-time this morning, by announcing lower interest rates and a new round of debt monetization. Historically, this kind of thing has sent the financial markets into Pavlovian ecstasy, with stocks soaring and the local currency falling. Sound money people have for years been warning that such New Age monetary policies […]

The new sales pitch for the high fee active manager goes something like this: “passive investing has gotten so large that this creates greater opportunities for us to take advantage of these inefficiencies and outperform the market.” In fairness, this comment is partly true because more passive investors should create the need for more active […]

And so things are back to normal: following yesterday’s unexpectedly poor 10 Year auction, which tailed notably while the bid to cover dipped despite it trading at the -3.00% fails rate in repo, moments ago the Treasury sold $12 billion in a 30Y reopening of Cusip RQ3, at a yield of 2.72%, stopping through the […]