Business

With Donald Trump's historic tax reform on the verge of passage, and with the Fed continuing its rate hiking cycle so far undeterred, and according to the Fed's own dot plot still having another 7-8 rate hikes to go, China is getting nervous because, as the WSJ reports, it fears "a double whammy sapping money out of China by making the U.S. a more attractive place to invest." In other words, those capital outflows which China was confident it had finally bottled up, are about to return. And that's even as the U.S.

With Goldman Sachs publishing at least one, and in most cases two or more weekly reports urging its clients to keep pouring capital into emerging market assets, whether equities, bonds or FX, it is no surprise that Emerging Markets remain the big winners in 2017, up 10% points more than developed this year.

Authored by Lance Roberts via RealInvestmentAdvice.com,

Last week, I discussed the issue of “bubbles” in the market. To wit:

“Market bubbles have NOTHING to do with valuations or fundamentals.”

 

Hold on…don’t start screaming “heretic” and building gallows just yet. Let me explain.

 

One week ago, in its latest assessment of the current state of tax reform in the aftermath of the Senate's passage of the tax bill, Goldman analysts calculated that while growth impact from tax reform had increased fractionally to around 0.3% in 2018 and 2019 "reflecting the slightly larger amount of tax cuts in the Senate plan following revisions, and our expectations regarding the eventual compromise", it expected a very modest - if any - boost to US economic growth from tax reform.

Following the 'successful' launch of Bitcoin futures overnight, Interactive Brokers - whose founder had been adamantly against the CME/CBOE product over risk concerns - has enabled clients to trade the crypto-craziness on its platform... but with some notable constraints.

Interactive Brokers began offering clients the ability to trade bitcoin futures at the start of trading on the Cboe Futures Exchange (CFE) on Sunday night, December 10th, 2017.