Here Are the Facts Willfully Blind Investors Are Ignoring
Many investors are willfully blind. They ignore the facts and keep taking excessive risks, thinking the Fed will come to their rescue. But it won’t.
May 16, 2019 | Peter Christensen |
Insiders Are Selling Stocks. Are You Going to Be the One Left Holding the Bag?
Last month, insider sellers outpaced buyers by a ratio of 5 to 1—the highest in two years—data compiled by the Washington Service showed. When insiders sell, many investors are choosing to go against their financial adviser’s “advice” they heard in 2008 to “just ride it out.” Most investors do not have six years to regain their losses like they had to when the last crash happened. Are you going to be the investor to ride this next correction to the bottom?
May 06, 2019 | Lu Want |
Yellen: “Global Central Banks Need One More Crisis Tool”
Now, Janet Yellen is sounding the alarm that launching additional multi-trillion-dollar rounds of quantitative easing and cutting interest rates into negative territory—two aggressive and controversial monetary tools that until a few years ago were considered the tools of absolute last resort—are simply not enough.
Yellen proposes that since these powerful financial tools are now inefficient because they only indirectly influence the markets, Central banks should be able to directly buy falling stocks and bonds to prop up the market. The moral hazard issues that come up with this ludicrous proposal are tremendous. Wall Street will be able to do anything it wants, knowing the Fed will cover any losing bet to save the market. It also sounds like desperation. What does Yellen see that caused her to voice an extreme option never proposed before by a US central banker?
May 01, 2019 | Jesse Colombo |
Downside Risk Dwarfs Upside Reward
Analyst Lance Roberts provides an insider’s look at the financial markets’ near-term horizon and compares it to the previous two cycles. The “Goldilocks economy,” the “permanently high plateau,” and the “buy and hold” strategy all died when the market reversed. The all-time high your portfolio is trying to accomplish when it’s 100% invested in the market could also be the last “all-time” high you’ll see for the next 6 to 10 years.
Apr 14, 2019 | Lance Roberts |
$10 Trillion in Bonds Are Losing Money
The stockpile of global bonds with below-zero yields just hit $10 trillion. Bloomberg reports that while negative yields on paper suggest investors lose money just by holding the obligations. risk assets may be entering the danger zone. “We’ve never seen monetary easing so long, so broad, so big,” says Brian Singer, head of dynamic allocation strategies at William Blair, a Chicago-based fund manager that oversees $70 billion overall. “What’s happened after every significant period of accommodation is a reckoning. This time, the bubble is lower-rated credit and illiquid private assets.”
Apr 04, 2019 | Cecile Gutscher |
Hedge Fund: Sell Stocks, Buy Gold Is the “Trade of the Century”
Crescat Capital has a history of outperforming the S&P 500 Index. Their Global Macro Fund returned 41% last year in a down market. Now, Crescat Capital is the latest hedge fund moving into gold and out of stocks. “U.S. economic data is deteriorating, and inversions remain across the Treasury yield curve. The last two times the credit markets had such a high distortion, asset bubbles began to fall apart shortly thereafter,” Crescat wrote, and they acted by moving 75% of its portfolio into gold. You have to ask yourself, “Can I afford not to follow the smart money?”
Mar 21, 2019 | Sarah Ponczek |