Submitted by Tyler Durden on 09/01/2015 - 12:50 "The current secular shift in reserve manager behavior represents the equivalent to Quantitative Tightening, or QT. This force is likely to be a persistent headwind towards developed market central banks’ exit from unconventional policy in coming years, representing an additional source of uncertainty in the global economy. The path to “normalization” will likely remain slow and fraught with difficulty."
Submitted by Tyler Durden on 09/01/2015 - 13:36 Llast week, during which the S&P 500 was up 0.9% as the market rebounded off of Tuesday’s lows, BofAML clients were net buyers of $5.6bn of US stocks—the biggest inflow in our data history (since ’08) following five weeks of selling. The last time flows were close to these levels was during the (less extreme) volatility in early January of this year, as well as following the Tech/Biotech sell-off in early 2014 (see chart below). Net buying last week was broad based—while no client group saw record flows relative to its own history, hedge funds, institutional clients and private clients were all big net buyers which led to record inflows when combined.
Submitted by Tyler Durden on 09/01/2015 - 12:26 Doomed if you do, doomed if you don't: trash your currency and watch capital gush out of your economy and financial sector, or support your currency and watch your export sector's sales and profitability crater.
Whichever option China chooses, it loses.
Submitted by Tyler Durden on 09/01/2015 - 11:36 Is September 2015 going to be one of the most important months in modern American history?
Submitted by Tyler Durden on 09/01/2015 - 13:21 That's what happens Larry when there are 64 million shares short and only 52.3 million shares outstanding...
Submitted by Tyler Durden on 09/01/2015 - 13:11 It doesn’t make sense to you. And it shouldn’t to anyone. Unless – they first go directly to the ‘house bar and media entertainment center’ that is always open and always free with spiked Kool-Aid™. It works better and is cheaper than actual liquor. It’s not actually a drink per se. It’s just hoopla and endless propaganda for the masses. That’s why it’s free and encouraged. It keeps everyone happy within the walls and enhances the experience, while simultaneously acting as one non-stop running commercial to entice anyone foolish to think they too can get rich quick. All legal by the way. The laws were adapted to fit the criteria.
filed under (unt
Submitted by Tyler Durden on 09/01/2015 - 12:03
Submitted by Tyler Durden on 09/01/2015 - 11:46 Surprise!!! Month-end window-dressing manipulation massacred...
Third Greek Bailout Suddenly In Jeopardy: Creditors Warn Cash May Be Delayed If Elections Don't Go As DesiredSubmitted by Tyler Durden on 09/01/2015 - 11:14 Just when everyone was convinced that the main "risk off" event of the summer, namely the Greek bailout, was safely tucked away and that having abdicated its sovereignty to its creditors and Germany in particular, who now hold the Greek banking system hostage courtesy of draconian capital controls, that Greece would continue to receive its monthly cash allotment just so it could repay creditors from its first two bailouts and would not make headlines for the foreseeable future , Market News just reported that suddenly even the Greek bailout is no longer on autopilot as a result of the upcoming elections in three weeks, whose outcome is anything but assured.
Submitted by Tyler Durden on 09/01/2015 - 10:44 For the last few years, US equity traders have become conditioned to expect the miraculous arrival of some heavy-handed levitation in stock markets as 330pmET rolls by. This became ubiquitous enough to inspire a Twitter account. Well, it appears the Chinese have learnt a thing or two from the American manipulators... behold China's 2pm Ramp Capital at work.
filed under Assholes...
Submitted by Tyler Durden on 09/01/2015 - 10:25 Perhaps the greatest nightmare for investors in a commodity stock is that the commodity in question goes the way of coal. After more than a century of dominance in the U.S. and abroad, coal appears to have entered into a structural decline. A funny thing happened on the way to the graveyard for coal companies though – one of the industries greatest detractors, George Soros, appears to be stepping in as a supporter.
Internationally, stocks had their worst month in the last three years. In one of the most volatile trading periods since the financial crisis, August saw $5.7 trillion erased from the value of stocks worldwide and no major stock market was left unscathed.
The S&P 500 was down a significant 6.3% and the Dow Jones Industrial Average ended the month 6.6% lower, while the Nasdaq was down 6.9%. At one stage losses were much higher but a sharp bounce toward the end of the month meant the declines were that as bad as they looked like they would be.
The weak performance of equity markets in August was mirrored across the world’s major financial centres, with the FTSE down 6.7%. The pan-European FTSEurofirst 300 index recorded a monthly loss of 9% – its worst monthly performance since August 2011.
There is no other story that the topic of Russian soldiers on American soil that has brought so much consternation ad criticism to my doorstep. Yet, the provability of the claims of Russian Spetsnaz training inside of the United States is child’s play
Yesterday, I reposted a video of uniformed Russian soldiers traveling in Kentucky while riding inside of Department of Homeland Security vehicles. In effect, there was even official acknowledgement from the Tennessee National Guard.
As the S&P 500 skids to a loss of about 6% for the month of August. It may be time to refer back to military history in managing your portfolio.
Any good general knows the difference between strategy and tactics. Strategy is the overarching plan to defeat one’s opponent, tactics are the actions used to ensure that strategy is successful.
So, your strategy is, in all likelihood, long-only. Shorting stocks is generally only done by professionals, and, actually, only a certain subset of professionals. In fact, most of my friends in the institutional money management game run long-only funds.
by Jeff Nielson, Sprott Money:
A repetitive flaw continues to circulate throughout much of the media – mainstream and Alternative, alike. This flawed analysis contends that we are heading for a deflationary crash, and reflects a fundamental misunderstanding of economic dynamics.
This fundamental (and unforgivable) error comes from a failure to recognize the definition of deflation: it is when the currency in which a particular jurisdiction is denominated rises in value. It is with this basic fact in mind that we can now view a simple hypothetical example, which resolves the phony “inflation/deflation debate” once-and-for-all.
“Mankind must put an end to war before war puts an end to mankind.” John F. Kennedy
Ever since I can remember, there has been war after war and talk of another war: Vietnam, Iran, Libya, Iraq and Afghanistan. As a matter of fact, the United States has been at war almost continually since 1776. America has been in some sort of conflict 214 of the 236 years of its existence. That’s 90 percent of our history we’ve been at war!
There is the Lord’s wars and there is man’s war. People, more often than not, cannot discern the difference between good and evil, right and wrong, righteous and unrighteous, when it comes to war?
In markets distorted by permanent manipulation the most powerful incentive is to borrow as much money as you can and leverage it as much as you can to maximize your gains in risk-on asset bubbles.
A core dynamic is laying waste to global financial markets: the greater the level of central bank/government manipulation, the greater the systemic fragility.
One key characteristic of this fragility is that it invisibly accumulates beneath the surface stability until some minor disturbance cracks the thinning layer of apparent stability. At that point, the system destabilizes, as it has been hollowed out by ceaseless manipulation, a.k.a. intervention.
How well do we truly know ourselves? Do we carry our insecurities and peculiarities around with us? Are we hiding the broken pieces? Are we driven by repressed fear and hidden lust?
Are we seeking revenge? Are we seeking redemption? Whose interests do we truly represent? In the end, does it even matter?
We are living in the days of deception. Question everything, and realize that if something doesn’t seem right, it’s usually much worse than you could ever imagine. Where there’s lots of smoke and fire, too often the agenda lies right around the corner. We must realize that their time is limited, and they have to move pretty swiftly to advance their cause.
The markets were ‘shockingly’ interesting last week. But what investing opportunities have been created by the recent ‘shock’?
The seriousness of last week’s shocking action in the market is shown by the volatility index, which posted its second highest reading since its inception in 1990. This is comparable to the great crash of 2008/9.
There has been much discussion regarding technicals and charts. Instead, we prefer to focus on the trend, particularly the uptrend since 2012, without analysing the myriad of technical indicators. The weekly chart of the S&P 500 shows the uptrend is still intact (green dotted line below), although the S&P 500 arrived at a critical ‘make-or-break’ point. The weekly close on the trendline, only a couple of points above the 100 week moving average, suggests that all scenarios are still open.
Submitted by Tyler Durden on 09/01/2015 - 13:56 In an unprecedented move to stem the tsunami of migrants entering Europe, Hungary has decided to stop all trains at Budapest man station to stop refugees - most of them from conflict areas such as Syria - from entering the EU onwards to Austria and Germany. For now, there are 1000s of refugees waiting at the station, with entrances blocked by police.