Business

After Goldman, JPM and even Dennis Gartman all opined on Friday's "tech wreck", in which the Nasdaq tumbled 2% as the Dow Jones hit new all time highs (the only previous time it has done that was in 1999 just as the tech bubble was ramping up), and when the Philly semiconductor index fell 4.2%, SocGen's Andrew Lapthorne could not resist, and in a note released on Monday morning, explains that what happened on Friday was merely an episode of "systematic momentum selling", or said otherwise, a teaser of what happens when the algos all "head for the door all at the sam

It's not over...

Felix Zulauf (via Barron's round table)

Do you have any specific investment picks for the second half?

 

I don’t. Investors should tighten risk-management strategies to their portfolios. I expect the FANG stocks and the Nasdaq to have a big selloff. They could easily fall 30% or 40%. But I don’t want to end my Roundtable career on a bearish note. [Zulauf announced at the January Roundtable that he is “retiring” from the panel after this year.]

 

While the VIX rebounded from its lowest level since 1993, it was volatility bets for tech stocks that saw the biggest spike last week.

As Bloomberg notes, amid Friday's Fang-nado, the CBOE NDX Volatility Index soared 40%, the most since the stock rout of January 2016, reaching its highest level relative to the (S&P) VIX since the aftermath of the dot-com bubble burst.

With tech shares including Apple Inc., Nvidia Corp. and Applied Materials Inc. down in early New York trading, and volatility soaring in many individual tech stocks...

Along with Eric Mindich's Eton Park Capital Management, Viking Global Advisors was once a stalwart name in the hedge fund industry, consistently generating double digit returns no matter the economy or macro climate.

Authored by Robert Huebscher via Advisor Perspectives,

Harry Markopolos, the investigator who exposed the Bernie Madoff Ponzi scheme, has uncovered a new fraud. The unfunded status of the pension fund of the Boston Transit Authority (the “MBTA”) is $500 million bigger than previously thought, according to Markopolos. This will have a significant impact on the municipal bond market, especially if it turns out that the MBTA’s problems are endemic among similar pension funds.