By EconMatters
We discuss the recent market move in equities, what are the causes and future ramifications given the size of the move, and address viewer e-mails as well in this trading video. A lot of Investors are holding some pricy stocks in their portfolios right now.
https://www.youtube.com/watch?v=haDU684jVIE
Submitted by Joseph Jankowski via PlanetFreeWill.com,
After eight years of the regulation-happy Obama administration, the United States has undergone a huge slide into the 17th most economically free country in the world, according to the Heritage Foundation’s 2017 Index of Economic Freedom.
Under president Obama, the federal government issued over 600 major regulations, costing the U.S. economy hundreds of millions of dollars. Those regulations were placed on top of the 426 regulations introduced under eight years of George W. Bush.
For 60 years the labor force participation rate of 25-54 year old men in America has declined. There are many reasons for this existential decline, but Philly Federal Reserve President Pat Harker explained today during a Q&A session that he is concerned that more 25-54 year old men are out of the workforce and blamed "drug abuse" for the problem.
We have noted in the last few days the divergences between US equity and volatility markets and chatter of a major fund needing to liquidate positions. After today's price action (and more color from trading desks) we are starting to see the 'fingerprints' of what appears to be a multi-billion dollar forced short cover that has almost perfectly correlated with the linear surge in US stocks.
Here's RBC's Charlie McElligott to explain the details behind this move...
Over half a year after we first reported last August that foreign official institutions - central banks, sovereign wealth funds and reserve managers - are liquidating US Trasuries in record amounts, a process that only accelerated into last month when official entities sold a record $405 billion in US paper in the LTM period, Bloomberg decided to catch up to the topic with "America’s Biggest Creditors Dump Treasuries in Warning to Trump."