MOMENTUM PROFILE FOR THE MAJOR ASSET CLASSES
Momentum isn’t everything, but it’s hardly chopped liver… Source
Tag Archives: Asset Classes
The Nonsense Recovery
Eventually, investors are going to realize that the discussion of a “recovery” is nonsense. The economy can never recover the pace and frenzy of the bubble years – and so much the better. It has to move on to something new. The big question is: What will this new economy look like? One important detail: [...]
MID-AUGUST PERFORMANCE UPDATE FOR THE MAJOR ASSET CLASSES
Economic anxiety is taking a toll on risky assets so far in August… Source
JULY WAS HOT, BUT COOLER DAYS AHEAD ARE LIKELY
July was a great month for the major asset classes—prices rose across the board… Source
MID-MONTH PERFORMANCE UPDATE FOR THE MAJOR ASSET CLASSES
Misery loves company, but returns for the major asset classes show no sign of wear this month from the economic worries of late… Source
China Downplays Role of Gold in its Forex Holdings
This past week China’s State Administration of Foreign Exchange, or SAFE, indicated that it will “improve its diversification strategy on investing its foreign-exchange reserves–which at nearly $2.5 trillion is the world’s largest–but gave no details,” according to The Wall Street Journal. The regulator had earlier indicated that the euro will stay an important part of [...]
THE MAULING IN MAY
May was the worst month for the major asset classes since the dark days of February 2009… Source
ETFs and the “Flash Crash”
Liquidity is one of the key selling points for exchange-traded funds (ETFs), but the Dow Jones “flash crash” of May 6 shows how that supposed advantage can turn into a huge liability for investors. A report this week from the SEC and the Commodities Futures Trading Commission (CFTC) found that ETFs accounted for the overwhelming [...]
Buy Japan
When we revealed our new Trade of the Decade in The Daily Reckoning earlier this year, the reaction we got from a lot of readers could be summed up in one word: “Huh?” Almost no one quarreled with the first part of our trade, “Sell US Treasurys.” But almost no one agreed with the second [...]
Daily Reckoning Group Research Project: Trade of the Decade
A few days ago, we introduced the first-ever “Daily Reckoning Group Research Project” in which we asked you, The Daily Reckoning faithful, to submit your selections for the Trade of the Decade. Specifically, we asked: 1) Identify just one specific asset, commodity, stock market sector, currency, mutual fund, ETF etc. to buy and hold for [...]
ASSET ALLOCATION…YET ANOTHER CLUE
Owning multiple asset classes isn’t everything, but assuming you own a broad spread you’ll probably generate middling results if not slightly better over time… Source
US Trade Deficit Widens
The price of oil has dropped from $83.18 a week ago, to $79.80 this morning… Why did this spoil my day? Well, like Lloyd Bridges in Airplane, I must have picked a bad day to fill my gas tank – the other day, when oil was so high! Well… Even with oil backing off, the [...]
France Against US Dollar Dominance
Well, the euphoria around the risk assets of currencies and commodities got watered down as the day went on yesterday, and that continued throughout the overnight and morning sessions in Asia and Europe. The currencies and commodities haven’t turned on a dime; they just stopped moving higher versus the dollar… Although, now that I’ve said [...]
ARE THE EASY GAINS BEHIND US?
December was a mixed bag of performance for the major asset classes, mainly because fixed-income was weak… Source
The Trade of the NEXT Decade
No, dear reader…it’s not that simple. It never is. That’s true of almost everything…. The bond market has begun to sell off. The big question is: what does it mean? Is it A sell-off? Or THE sell-off? We’ve done well with our simple trade for the last ten years. We bought gold. We sold stocks. [...]
Bloomberg Confirms that Gold was the Winning “Trade of Decade”
Regular readers of The Daily Reckoning will recall the “Trade of the Decade” we proposed ten years ago… to buy gold on dips and sell stocks on rallies. Now that the decade’s over Bloomberg seems to have caught up with the idea, confirming that gold investments have outperformed commodities, oil, high grade corporate bonds, treasuries, [...]
Bloomberg Pulling ‘Suggested List’ of Stocktwits
It’s a big day for Stocktwits as a farm system of talent in the financial world. From our blog: Professional traders who use the Bloomberg terminal to monitor markets and news can now get access each day to a selection of some of the best tweets from StockTwits. Bloomberg is well known for its News [...]
The Fed’s Real Objective in Keeping Rates Near Zero
One of the key objectives of the Federal Reserve in pursuing these policies has been to drive investors back into riskier asset classes. By lowering the fed funds rate below 0.25% and promising to maintain a near-zero policy rate for an ‘extended period,’ the yield on near-cash instruments has all but evaporated. No surprise, then, [...]
Roubini Sees Market Crash All Over the World
New York University Professor Nouriel Roubini, who recently saw the recovery as “U-shaped,” is now concerned a dollar rebound will cause global markets to crash. His main concern is the carry trade in the US dollar. The dollar is being borrowed at near-zero interest rates to then be invested into a wide array of now-popular [...]