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…

The Latest Jobs Report Was Not Really That Great

Well, yet another month has passed, so it is time for another jobs report. Fortunately, this one was a lot better than last month’s as the number of new jobs created surged compared to February and ultimately managed to beat expectations. Unfortunately, the average hourly earnings came in well below expectations and the number of…

Forget About Recessions

There will be another U.S. economic recession as assuredly as the sun will come up tomorrow. The problem is that no one knows when it will occur or what will trigger its onset. In fact, it will likely be over by the time it is officially recognized. Seven months after the Great Recession had officially…

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

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser. Is this happening to you frequently? Please report it on our feedback forum. Reference ID:

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.…