On 2 November 2017, the Bank of England raised rates for the first time in a decade and Sterling’s initial rise was promptly sold off by forex traders as we discussed.
Submitted by Nick Colas of Datatrek Research
Poor, Poor Pitiful… Value Stocks
"Value trap". That’s a phrase we haven’t heard much in recent years, but GE seems to be bringing it back. And as we looked at the dramatic outperformance of growth stocks over value this year, it is clear that there are many such traps in US markets. Having covered the auto industry for a long time, we are well acquainted with the phenomenon. In today’s note: a 12-point list to help you identify value traps.
Authored by Jeffrey Snider via Alhambra Investment Partners,
As a natural progression from the analysis of one historical bond “bubble” to the latest, it’s statements like the one below that ironically help it continue. One primary manifestation of low Treasury rates is the deepening mistrust constantly fomented in markets by the media equivalent of the boy who cries recovery.
Authored by John Rubino via DollarCollapse.com,
A policeman sees a drunk man searching for something under a streetlight and asks what the drunk has lost. He says he lost his keys and they both look under the streetlight together. After a few minutes the policeman asks if he is sure he lost them here, and the drunk replies, no, and that he lost them in the park. The policeman asks why he is searching here, and the drunk replies, “this is where the light is”. — The Streetlight Effect
Last week we reported that in October, a record month in which Japanese stocks saw just one losing day in the entire month, foreigners bought a record amount of Japanese equities. It wasn't just Japan, however, where the international community was busy buying. According to the just released TIC data, foreigner accounts, both official and private, were just as busy buying US stocks. In fact, of the $61 billion in net long-term securities purchased by foreigners in September, almost half - or $26 billion - was equities.