In the first few months of the year, a trading desk rumor emerged that even as institutional traders dumped stocks and retail investors piled into ETFs, a "mystery" central bank was quietly bidding up risk assets by aggressively buying stocks.
With the Nasdaq 100 index making new record highs on practically every day of 2017, and returning 32% during the past 12 months vs. "only" 19% for the S&P 500, Goldman's clients are starting to get concerned. And, as Goldman's David Kostin writes in his latest weekly letter, increasingly nervous investors are asking "whether NDX outperformance will continue."
Authored by Axel Merk via MerkInvestments.com,
How does one construct a portfolio in an era of seemingly ever rising and highly correlated asset prices? Years of asset prices moving higher has changed both retail and institutional investors; it has changed the industry; and, in my humble opinion, those changes spell trouble. The prudent investor might want to take note to be prepared.
Authored by Kevin Muir via The Macro Tourist blog,
The other day, fabled hedge fund manager Paul Tudor Jones made headlines when he issued a bold warning to Janet Yellen & Co. (from Bloomberg):
Authored by Mark St.Cyr,
If you were one of the myriad analysts, next-in-rotation fund managers, tech commentators, et al paraded across the financial/business media over this past week – you had a good week. The narrative of “earnings beats” together with the so-called “relief rally” emanating via the French elections helped propel the argument.
However, if one (once again) peered passed the headlines of Non-GAAP reporting alchemy that would make Issac Newton envious one could clearly see that all was not “gold.”