Market Update: Sovereign Wealth Funds And Volatility

By OpenMarkets Jack Bouroudjian explains how sovereign wealth funds are affecting recent market volatility. The top ten funds represent $10 trillion in global market value, and the re-weighting of the MSCI Index could have major implications. “Today, the funds are playing a large role in the direction of every market around the world,” Jack says.…

Market Commentary – May 9, 2019

SummaryAfter a robust rally to begin the year, stocks are now in the midst of their most significant pullback of 2019.Continued strength from leading groups (like Semiconductors) and evidence of a quick shift in investor sentiment would be consistent with a consolidation that is limited in degree and duration.Further deterioration in sector-level trends and other…

Weekly Market Notes – March 11, 2019

SummaryThe most recent economic data fits with our 2019 outlook that suggests economic growth is likely to slow this year but recession prospects remain very low.The current weakness in the equity markets should be viewed within the confines of a consolidation phase that is likely to continue until such time as a firm trade deal…

A Closer Look At Debt And The Economy

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Keeping Bonds As A Buffer

Last year was unusual: U.S. equities and 10-year Treasuries both finished down, as heightened economic and geopolitical uncertainty and expectations for higher short-term rates drove markets. We see growth as the key market driver in 2019. This suggests Treasuries may offer more diversification benefits as a buffer to bouts of equity weakness. Chart of the…

You Can’t Debunk MMT

Back in 2010, I came across Modern Monetary Theory (MMT) for the first time and found it somewhat appealing. This is the theory that Alexandria Ocasio-Cortez promoted along the way to her meteoric rise to Congress. MMT is a theory of economics that says some pretty controversial stuff – the government has a real budget…

Fed Pulls The Punchbowl, Part 2

In the “Fed Pulls the Punchbowl” part 1, I discussed some of the liquidity shifts we’ve seen in the credit markets over the last year or so. Since then, we’ve seen the market fall 3,000 points from ~24,500 to ~21,500 only to bounce back in the middle of this zone with the 1,000 point up…

Powell Doctrine: Festive 2018 Update And 2019 Outlook

Zoologists have just named a new creature, which buries its head in the sand, after President Trump. Fed Chairman Jerome Powell narrowly came in a close second on the list of eponyms. After his performance at the latest FOMC meeting, Mr. Market has graded Chairman Powell’s parochial, dual mandate fixated view as a global failure.…

Every Bubble Is In Search Of A Pin

Now that the world’s central banking cartel is taking a long-overdue pause from printing money and handing it to the wealthy elite, the collection of asset price bubbles nested within the Everything Bubble are starting to burst. The cartel (especially the ECB and the Fed) is hoping it can gently deflate these bubbles it created,…

Will Santa Leave A Lump Of Coal?

As we enter the last month of the year, the holiday season is kicking into full gear, decorations are popping up everywhere, and the burning question arises, “Will Santa Claus bring gifts for stock market investors, or will he leave a lump of coal in their stockings?” It was a bumpy sleigh ride last month,…