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Why Bond Traders Have No Idea What's Going On

Why Bond Traders Have No Idea What's Going On

Draghi shot his ‘bazooka’ today and the initial reaction from investors is telling, according to BofA's Michael Contopoulos. The price action in markets (equities down, US rates higher, strength in the Euro) suggests that investors focused more on the signaling of no further interest rate cuts than on the reductions in three key interest rates and the additional bond purchases.

A Top Performing Hedge Fund Just Went Record Short: Here's Why

A Top Performing Hedge Fund Just Went Record Short: Here's Why

When we last looked at the $2.9 billion Horseman Capital, we reported that not only has the fund which many have called the "most bearish in the world" generated tremendous returns almost every single year since inception (except for a 25% drop in 2009 after returning 31% during the cataclysmic 2008), but more notably, it has achieved that return while been net short - and quite bearish on - stocks ever since 2012.

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