Bitcoin is booming, digital
currency hedge funds are sprouting at the rate of two a week and
the value of all cryptocurrencies has surged tenfold this year
to more than $170 billion.
Having enjoyed a blisteringly
hot summer quarter, emerging markets are heading for one of
their best years on record - as long as the dollar and global
borrowing costs do not rise much further before the end of 2017.
Bitcoin bounced by more than 20
percent in the space of just four hours on Friday, having
skidded below $3,000 earlier as Chinese authorities ordered
Beijing-based cryptocurrency exchanges to stop trading.
The last week has seen the
biggest inflow into U.S. government debt funds since last year's
turbulent Brexit vote and the 25th straight week of moves into
bonds globally, analysis of trading data by Bank of America
Merrill Lynch showed.
Global bonds attracted bumper
inflows of $8.1 billion Bank of America Merrill Lynch (BAML)
data showed on Friday, in a week when North Korean tensions
escalated, and U.S. President Donald Trump's threat to shut down
the government hurt U.S. stocks.
The good news is that there is a handy
tool, better than negative interest rates or asset buying, to
jump-start the economy when the inevitable recession comes.
Threats by U.S. President Donald
Trump to rain down "fire and fury" on North Korea preceded the
biggest equity outflows in 10 weeks, Bank of America Merrill
Lynch (BAML) data showed on Friday.
Sterling fell to a
five-week low on Tuesday after July inflation data undershot
market expectations, dealing another blow to expectations of a
rate increase in the coming months.
Institutions do better than individuals at
active fund management, but given that both come out losers the
underlying message is that picking stocks and bonds is a game
neither group should play.
Healthcare stocks suffered their
largest outflows in six months after U.S. attempts to repeal
Obamacare crashed and burned, while appetite for tech stocks
faded after a strong run, Bank of America Merrill Lynch data
showed on Friday.
Financial markets are in the grip of
something very like a speculative mania, which may well be good
reason not to expect a crash soon.
If you invest in mutual funds, no matter
where you live in the world, you are probably doing it wrong.
Bitcoin surged to a record high
of more than $6,000 on Friday, pushing its market capitalization
to $100 billion at one point, as investors continued to bet on
an asset that has a limited supply and has paved the way for a
whole slew of crypto-currencies.
World stocks have gained for
sixth straight quarters to chalk up their best run since 1997,
while a 20 percent rebound in oil has turned around one of its
worst starts to a year on record.
A widely-tracked index of global
stocks, MSCI's All-Country World Index, hit a
new record high in European trading on Monday.
A little thought experiment for
If the United States does more than flirt
with a government shutdown and technical default, old
assumptions about the safe- haven status of Treasury debt and
the dollar will face unprecedented threats.
U.S. equity funds have suffered
their longest outflows streak since 2004, Bank of America
Merrill Lynch (BAML) data showed on Friday.
Confronting an economy in which falling
unemployment is failing to kindle inflation, as the supposed
laws of economics say it should, the European Central Bank
counsels “patience, persistence and prudence.”
That fund managers are rewarded for
hugging the benchmarks they track is a big reason behind the
otherwise puzzlingly mild reaction of financial markets to
rising tensions and threats between nuclear powers the United
States and North Korea.
To understand secular stagnation, with its
low inflation and low growth, look first at the growth of the
information economy and the expansion of intangible assets.
Other benefits like peace and a livable
planet notwithstanding, the financial cost of socially
responsible investing appears to be high.
It may not happen soon but eventually
the vogue for investing in “superstar firms” like Google,
Facebook and Amazon will end in the fire of overvaluation or the
ice of regulation.
The global crude surplus that
caused a price rout has largely been absorbed, resulting in
higher crude prices, Gary Ross, founder of PIRA Energy and head
of Global Oil Analytics for S&P Global Platts, said on Thursday.
The New Zealand dollar fell in
early Asian trading on Monday after no single party won a
majority in an election over the weekend, leaving investors
facing a period of political uncertainty.
If an investment strategy is good enough
for one of the top minds in finance, it is probably good enough
for you, right?
If the world becoming less economically
integrated, someone is going to have to explain why growth
around the world is so remarkably consistent and tightly
Unpleasant it may be, but investors do
better if the mutual funds they hold are managed by companies
with an ethos more like that of a viper pit than a kindergarten.
It isn’t just your imagination: activist
hedge funds do go after companies led by woman CEOs more often.
If your aim is to spend 4 percent of your
portfolio annually in retirement, the best advice is “I wouldn’t
start from here”.
Bitcoin and other
"cryptocurrencies" are big money, virtually as big as Goldman
Sachs and Royal Bank of Scotland combined.
The Trump administration’s vision of a
rollback in banking regulation isn’t just dubious medicine for
the economy, it will do shareholders no favors.
Money has flowed into
emerging-market bond funds for six straight months and global
equity funds attracted another $10 billion last week, Bank of
America Merrill Lynch said, as it gave its latest warning that
the rally looks set to end.