presidential election

Russia is getting “tired” of  Washington’s “baseless allegations” which accuse Moscow of meddling in the 2016 US presidential election. US officials, including outgoing President Barack Obama, have accused the Kremlin of carrying out cyberattacks against US political organizations in order to help Donald Trump win the White House. Kremlin spokesman Dmitry Peskov told reporters that the groundless accusations amounted to a “witch-hunt” Obama has also warned his successor Donald Trump that Vladimir Putin is an “adversary” who should never be trusted over the US intelligence community.

In the latest indication of the troubles facing the active management industry, iconic asset manager Jeremy Grantham, and his Boston money management firm, Grantham Mayo Van Otterloo, have seen an unprecedented slump in assets under management as a result of failing to generate return on par with the market, leading to mass investor defections.

The market has become one giant trade.

That trade is:

1)   Long US stocks

2)   Long the $USD

3)   Short Treasuries

4)   Short Gold

In terms of speculative positioning, as Hedgopia has noted hedge funds are net positioned in precisely these positions with the exception of Gold (net long 96.6 futures contracts).

Moreover, investment advisors are piling their clients into precisely these positions.

H/T Josh Brown

Submitted by Lance Roberts via RealInvestemntAdvice.com,

The Problem With Forecasts

On Fruday, while confirming that the meme of "Fake News" has officially gone too far, Goldman Sachs slammed the talk of a Great Rotation from bonds into stocks (yes, calling it fake news), and writing that "the political rotation occurring in Washington, D.C. will not be mirrored in financial portfolios: despite the sharp fall in bond values during the past six months and the prospect of further losses in 2017, Goldman expects minimal asset rotation away from debt and into equities for two reasons.