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Finance 0
“The Money Is Just Sitting There… Doing Nothing For Society”
Of all the despicable side-effects of modern monetary policy, the worst might be the implicit encouragement artificially-low interest rates give small savers to take outsize risks. The only thing worse might be when government makes it explicit: How Denmark Is Trying to Get Savers to Invest in Risky Assets (Bloomberg) – In the country with the longest history of negative interest rates, an experiment is under way. The minister in charge of Denmark’s finance industry wants savers to shift some of the billions of kroner now in bank deposits over to riskier assets. Danes have about 840 billion kroner ($135 billion) in bank deposits, the lat... -
Finance 0
Safe Haven ETFs In Focus Amid Geopolitical Threats
North Korea has been relatively silent for two months. Safe haven funds were out of investor radar. However, they are back in reckoning as the North Korean leader made claims of his regime completing its nuclear program. Latest Developments in the Space North Korea launched a Hwasong-15 missile with improved technology that can put the entire United States within range, per Korean Central News Agency (KCNA). Per United States Secretary of Defense James Mattis, this missile flew higher than any previous missile. Despite widespread global criticism, North Korea has been continuously testing missiles to develop a nuclear program in order to ... -
Finance 0
Are Gold Stocks In For A Double Bottom?
(Audio length 00:11:50) On today’s editorial Doc and I look at the discrepancy between the move in some specific gold stocks and the ETFs that follow the sector. Some of the major miners are breaking down but GDX and GDXJ are still well above the early 2016 lows. Overall what we are seeing is money rotate within the sector and no new money enter the stocks at this time. ... -
Finance 0
BTFD! Bitcoin Back Above $10,000 After Flash-Crashing To $8,500
Chaos… Bitcoin bounced back $1500 from the lows, back above $10k… * * * Update: The crash is continuing with Bitcoin now collapsing below $9000… Ethereum and Litecoin are also under pressure. Numerous exchanges and trading platforms are suffering outages. * * * Having soared in the last 24-48 hours to as high as $11,395 this moring, Bitcoin has just tumbled back below $10,000… While a notable pump and dump, this drop is a mere 13% (following an 8% drop overnight after initially breaking $10,000). There is some chatter than Bitcoin flash-crashed to as low as $9130 on Coinbase… Remember on November 8th to... -
Finance 0
Low Volatility Means Low Turnover?
ZeroHedge had an interesting article about the very low turnover in hedge funds in the third quarter, only 26%. The title of the article includes the word paralyzed but the text rules out complacency. Instead, the conclusion seems to be that the market is going up in a way that just should not be, summed up as follows: …simply paralyzed, as they no longer have a grasp of financial “logic” when it is all superseded by central bank liquidity injections, and as such most trades feel fake, forced and just part of the FOMO charade to avoid losing one’s job. The article notes that a range of expectations from “extremely aggressive to be... -
Finance 0
November 2017 Beige Book: Reading Between The Lines – Rate Of Economic Expansion Unchanged
The consolidated economic report from the 12 Federal Reserve Districts (Beige Book) stated “activity continued to increase at a modest to moderate pace in October and mid-November“. The previous report stated “activity increased in September through early October, with the pace of growth split between modest and moderate”. Analyst Opinion of this month’s Beige Book Seems like the rate of growth was little changed from the last report. Please see the end of this post for words the Federal Reserve uses when the economy is entering a recession. The Beige Book completely missed the 2001 recession, and was late in see... -
Finance 0
Carnage: Wednesday’s Tech Bloodbath In Pictures
Boy, I’ve got to tell you, Wednesday is shaping up to be an absolute train wreck for FANG, for the Nasdaq, and for everyone’s favorite crowded trades more generally. Specifically, the Nasdaq 100 is having its worst day since August 17, when rumors that Gary Cohn was set to resign following Trump’s Charlottesville presser sent risk assets into a tailspin: That of course means the Nasdaq VIX is spiking – and “big league”: Well given that, it should come as no surprise that the VXN/VIX ratio is spiking the most since Goldman’s infamous early June FAAMG note: Remember this from June 9?… The FANG index is having its wo... -
Finance 0
Give Auto Parts A Try?
In spite of what you’ve heard, shorting stocks in 2017 has not been like shooting yourself in the foot. Don’t believe it. Because at least when you shoot yourself in the foot, it causes some excitement and, later, sympathy. In spite of this, for those foolish enough to give it another whirl, the two big auto parts retailers are rocketing up toward massive amounts of overhead supply.... -
Finance 0
The UK Was The Best Part Of The European Union
In the debate around the Brexit referendum in the United Kingdom, the side arguing on behalf of Britain remaining a part of the EU wasn’t a particularly convincing one. Positions for “Remain” were largely based on emotions. There is, however, one very convincing point for a British remainder in the union. The Rebel Voice Since the accession of the United Kingdom to the European Communities (EC) via referendum in 1975, the country has been, to put it mildly, a rebel when it comes to European integration. The concept of European integration is the idea that the problems on the European continent can be solved if the EU member ... -
Finance 0
Gold Being Odd And USD Being Tricky
Every now and then we see some kind of anomaly on the precious metals market. Sometimes it’s particularly useful and sometimes it’s just something random. Yesterday was one of those days when something didn’t seem right. The USD Index rallied, silver declined, mining stocks declined and yet, gold closed the session higher. What can we infer from this uncommon event? Unfortunately, not much. It was just one day when gold behaved in this way, so at this time we have no reasons to believe that gold’s one-metal rally was anything important. One thing that was visible in the gold market and that wasn’t visible in other parts of the preci...
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