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.
Unlike last month's ugly 3Y auction, today's just concluded sale of $24 billion in 3 year paper was stellar, stopping through the When Issued 1.934% by 0.2bps, a surge in buyside demand as the Bid to Cover jumped from 2.76 to 3.15, the highest since September 2015, while Indirect Bidders took down the most since August.
The details: the high yield was 1.932% vs six previous auction average 1.572%, it stopped through the WI of 1.394%.
The Bid-to- cover was 3.15, up from 2.76 in October, and well above the previous six auction average of 2.88.