European shares rose as Fiat rebounded on hopes concerns about parallel to Volkswagen are overblown, Asian stocks were little as Chinese shares fell to the lowest level of 2017 after poor export data, and U.S. equity-index futures rose ahead of a deluge of bank earnings. The dollar is headed for a weekly loss and gold trades at the highest price in almost two months.
The debate over what yield on the 10Y spells the end of the 30 year bond bull market, and would spillover into selling among other asset classes, is heating up.
By Robert Huebscher of Advisor Perspectives
Investors will confront excessive debt, high P/E levels and political uncertainty as they enter the Trump presidential era. In response, according to Jeffrey Gundlach, U.S.-centric portfolios should diversify globally.
Risk assets declined across the globe, with European, Asian shares and S&P 500 futures all falling, while the dollar slumped against most currencies after a news conference by President-elect Donald Trump disappointed investors with limited details of his economic-stimulus plans, and the Trumpflation/reflation trade was said to be unwinding.
With active managers losing billions in assets under management weekly, in many cases regardless of performance, as the great tsunami sweep funds away from the "2 and 20" (or even 0.5% and nothing) crowd to passive management, funds have become increasingly desperate to figure out how to preserve this dying business model, with its high fees and generous margins, in a time when the asset management - whether passive or active - industry can barely outperform the stock market. In the case of Blackrock, that has meant fusing active management with robotic quants, and the result has been...