This morning on Bloomberg Surveillance, Nobel winning economist Joseph Stiglitz discussed that it may be necessary to breakup the euro-zone, with a German exit being the preferred way to go. In an interview in July, Stiglitz expanded on his discussion of the problems in the euro-zone. Watch that interview below. … [Read more...]
Archives for August 2016
Worthy Reads: Global central banks dump U.S. debt at record pace
China’s state agencies struggle to coordinate policies in bid to boost slowing growth (SCMP) Why Some Banks Are Thankful for Money-Market Strains (WSJ) Obamacare’s in Trouble as Insurers Tire of Losing Money (Bloomberg) Oil futures cut losses after EIA reports larger-than-expected decline in U.S. crude supplies (MarketWatch) Global central banks dump U.S. debt at record pace (Money) … [Read more...]
Hedge Fund Rout Continues
Back in May I highlighted the analysis of Dan Loeb of Third Point LLC who, in April, said “There is no doubt that we are in the first innings of a washout in hedge funds." He was right, and hedge fund prospects are dropping like dominoes around the world. Today The Wall Street Journal ran a big cover story on the withdrawals plaguing previously anointed hedge funds Brevan Howard and Tudor Investment Corp. Laurence Fletcher and Gregory Zuckerman, writing in the WSJ, get right to the point, "The funds’ problem is clear: They just aren’t performing." Hedge funds offer clients great rewards … [Read more...]
Earnings Resume their Rise
After three months of decline and stagnation, real average hourly earnings rose once more in July to their highest since September of 1973. … [Read more...]
Worthy Reads: Gold Edges Higher on Weak Japanese Data and Dollar
Aramco's Path From One Oil Well to World's Most Valuable Company (Bloomberg) Dudley Says September Hike Possible, Markets Too Complacent (Bloomberg) Gold Edges Higher on Weak Japanese Data and Dollar (WSJ) Why the corporate tax rate in the U.S. should be 15% (MarketWatch) How farmers use 'digital agriculture' to grow more crops (Money) … [Read more...]
Your (Expensive) Health in Retirement
When saving, you must consider the potentially high costs of medical care during your retirement years. Fidelity estimates the health care expenses facing the average 65-year old couple have risen to a record $260,000. Fidelity writes: Paying for health care can be one of the largest expenses for people in retirement. A 65-year-old couple retiring in 2016 will need an estimated $260,0001 to cover health care costs in retirement, according to Fidelity’s Retiree Health Care Cost Estimate. This is a six percent increase over last year’s estimate of $245,000 and the highest estimate since … [Read more...]
Worthy Reads: Japan’s economy is barely growing
Oil Prices at One-Month High on Potential OPEC Action (WSJ) Hedge Funds Are Losing Endowments After Exodus by Large Pensions (Bloomberg) Google Fiber rethinking its costly cable plans, looking to wireless (MarketWatch) Japan's economy is barely growing (Money) Did Prime Day Sink July Retail Numbers? (Fortune) … [Read more...]
In Search for Alpha, Hedge Funds Focus on the (Really) Short Term
Dove satellites built by Planet Labs Hedge funds and market speculators are known for focusing on the short-term. Guessing whether or not a company "beats" or "misses" it's quarterly earnings guidance numbers, and by how much, has become a parlor game critical to the strategies of many funds and traders. But with a digital revolution that has produced a cascade of data for investors, hedge funds and others are focusing on very short-term information to paint a broader picture. A new venture called Planet Labs is capitalizing on the short-term data trend by launching a group of … [Read more...]
Worthy Reads: More people are cutting the cable cord than you think
Negative Rates for the People Arrive as German Bank Gives In (Bloomberg) More people are cutting the cable cord than you think (MarketWatch) Global monetary taps still open wide, Fed minutes in focus (Reuters) Global business to China: Scrap new cyber rules (Money) China Bond Yields Drop To Decade Lows As Economy Sinks After New Loan Creation Tumbles (ZeroHedge) … [Read more...]
It’s Time to Move Out of Mom’s Basement
At MarketWatch.com today, Quentin Fottrell reports that the number of multi-generational households has been skyrocketing in the last few years. Translation: a bunch of adult Americans are still living in Mom's basement. That's not good for them, or for the economy. Household formation is a great catalyst for economic growth, and more importantly, developing financial independence begins with, well..., independence. Young adults need to break out on their own and attempt to become members of the ownership society. Now, there are demographic trends holding back household formation. For … [Read more...]