The global market selloff continued over the past week. Our aggregate world index plunged 4.29%, and that’s with China’s Shanghai Composite on the sidelines in celebration of Spring Festival. The top performer of the active markets was the S&P 500, down only 0.81%. The biggest loser was Japan’s Nikkei 225, down a stunning 11.10%. Here…
From Liberty Street Economics — this post authored by Thomas Klitgaard and James Narron It always seemed to come down to railroads in the 1800s. Railroads fueled much of the economic growth in the United States at that time, but they required that a great deal of upfront capital be devoted to risky projects. The…
China is upset with “speculators.” You see it’s not that China’s economy is “landing hard” and it’s not that a massive yuan devaluation is almost a foregone conclusion. No, it’s that “manipulators,” “speculators,” financial “predators,” and all sorts of other nefarious foreign meddlers are colluding to destabilize the country’s economy and financial markets for personal…
SunEdison, Inc. (SUNE – Analyst Report) is expected to report fourth-quarter 2015 results on Feb 17. Notably, the company posted wider-than-expected loss in the last quarter. Let us see how things are shaping up for this announcement. Factors to Consider In an effort to strengthen its position as a renewable energy developer, SunEdison has been on an acquisition…
Whether you are Warren Buffet, Carl Icahn or Bill Ackman cutting losses is the hardest thing to do in Financial Markets these days. (Video length 00:09:03)
The ECB recently launched a review of the €500 bill. In all likelihood, the €500 bill is about to vanish. Is this a first step in a war on cash or is this a war on money laundering? ECB president Mario Draghi says Review of €500 Bill Not a War on Cash. “The 500-euro note and this…
Paul Krugman has a post up highlighting some of the lessons we’ve learned since 2008. He’s using a Liquidity Trap model, which, regular readers know I’ve been very critical of (see here and here for some exciting reading on this).* But I wanted to highlight a different point – what have we NOT learned since 2008 which is still holding us…
We are sure this is nothing to be worried about – and is likely just “transitory” – but just in case, here is some more recession-fiction to peddle… Yet another weekly cut in forward earnings estimates for US equities… Source: @Not_Jim_Cramer But it can’t be a recession, right? Think of all those bartender and waitress jobs…
We start with some observations on the latest developments in the global credit and rate markets (from Merrill Lynch, Citi, CS, Morgan Stanley and others). Bank Credit 1. Bank CDS spreads are catching up with bank bond spreads which have been widening since last summer. This feels overdone – the US banking system is the healthiest…
“Is it risky?” is one of the first questions you should ask about a new investment. Everyone wants investments with low risk and high returns, but it’s not always realistic. And most importantly, we all have a different feeling about risk. A great way to test whether your level of risk is appropriate is whether…
