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Tag Archives: Central Banks

Yellen’s Conundrum: Forestall Monetary Mayhem Or Release Political Pandemonium

Authored by Mark St.Cyr, Regardless of who wins the election, one thing is certain: the vote that takes place in December within the confines of the Eccles Building cast by a dozen un-elected, Ivy Leagued, academic bankers whose combined real world business experience is near nonexistent (less for that read in some wood-paneled library) will decide monetary policy that will have more implications for not only the U.S., but the world as a whole. Effecting not only the global financial markets,...

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One Hedge Fund’s “Magic Formula” For Boosting Inflation Involves A Trump Victory

With central bankers desperate to boost inflation both in their country, and around the globe, yet failing to do so for years (especially as measured by the long end of the yield curve) leading to serious economists and pundits going so far as proposing the pinacle of monetary lunacy, such as helicopter money, one person may have stumbled upon the "magic formula" for how to create inflation in the new normal. Here is One River Asset Management's Eric Peters laying out his inflationary...

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Dallas “Pension Fund Panic” As Mayor Warns Of 130% Property Tax Hike To Avoid Collapse

Over the past year, the biggest casualty to emerge as a result of global NIRP (or close to it) monetary policy have been pension funds, which have had two choices: either suffer losses as yields on new fixed income investments barely cover (and in some case don't), or scramble for duration (or outright risky investments like junk bonds and high beta stocks). In August, we created the chart below as a simplistic illustration of the pension "duration dilemma."  The chart graphs how a...

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Portfolio (Mis)Management & The Curse Of (Some) Talent

Submitted by Ben Hunt via Salient Partner's Epsilon Theory blog, You Had One Job Of course I think these pix and this meme are hilarious. But then I start to think about whether or not alternative investment strategies have done their job. I start to think about what that job is. And I go hmmm... Whenever you are about to find fault with someone, ask yourself the following question: What fault of mine most nearly resembles the one I am about to criticize?   ? Marcus Aurelius,...

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The Fallacy Of Central Planning (Exposed By South Park’s Underpants Gnomes)

Submitted by Jeffrey Snider via Alhambra Investment Partners, In the seventeenth episode of the second season of the Comedy Central cartoon South Park, the show introduces one of its longest lasting memes that has survived despite the first airing being nearly twenty years ago, and all the vulgarity and seemingly gratuitous violence in between. Titled Gnomes, we find one of the main character’s underpants (seriously) being stolen by small gnomes who feel compelled to do so. When...

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“Someone Is Wrong” – Why The Quant War Means Vol Is Set To Soar

With "active", carbon-based traders slowly becoming extinct (alongside the entire hedge fund industry courtesy of central banks who have banned all market corrections and the need for "hedging") and are gradually replaced by cheaper robotic, algorithmic, programmatic and other passive equivalents, the market has become progressively more boring, with equity vol collapsing, as most strategies are largely alligned - after all they mostly respond to the same set of signals. However, that is only...

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Hillary Clinton Regains 2 Point Lead In Latest ABC/WaPo Poll; S&P Futures, Peso Jump

With fundamentals irrelevant in a market controlled by central banks, the algos and early rising traders have found a new catalyst to trade off: the daily 7am release of the refreshed ABC/WaPo poll, and if anyone is wondering why the peso suddenly spiked... ... coupled with US risk assets suddenly going bid, it is becuase in the latest poll, Hillary Clinton has regained the lead from Donald Trump, who was leading as recently as two days ago, and was tied with Hillary yesterday. ...

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US Futures Flat, Rebound From Session Lows On Rising Election Jitters

Asian stocks, S&P futures and European shares trade flat as a tightening race for the U.S. presidency spurs demand for haven assets including the yen while weighing on stocks and Mexico’s peso. A turbulent overnight session saw some early risk off following the plunge in Facebook shares and the Fox News report that an FBI probe into the Clinton foundation may lead to a "likely indictment." More recently, news out of the UK, where a High Court ruled against the government, that an Article...

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Military Miscalculations

By Chris at www.CapitalistExploits.at Market dislocations occur when financial markets, operating under stressful conditions, experience large widespread asset mispricing. Welcome to this week's edition of “World Out Of Whack” where every Wednesday we take time out of our day to laugh, poke fun at and present to you absurdity in global financial markets in all its glorious insanity. While we enjoy a good laugh, the truth is that the first step to protecting ourselves...

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Hugh Hendry Interviewed On His “Eureka Moment” Trade Of The Day, QE, China, The Dollar And Much More

Submitted by Erik Townsend via MacroVoices.com Eclectica’s iconic manager, Hugh Hendry, was the featured interview on this week’s MacroVoices podcast. The entire interview is worth a listen and begins at 10:42. The interview starts on the U.S. Dollar. Hendry says that he’s long the dollar as is everyone else in the group of managers he respects. He opines that the pause in the dollar rally over the last year has been a result of the U.S. economy needing to regroup to...

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