Fed and BOJ

What the FED and BOJ Decisions Mean for Markets

No surprises here…

Both the Fed and BOJ did exactly what everyone expected them to. Read more

Money Market

Expect Higher Correlations And Volatility In This Fed Manipulated Market

We’re trading in some truly interesting times.

Check out the index below from Credit Suisse depicting contagion risk across global markets and asset classes. It’s now showing that global markets and assets are at their highest correlation since the index was created. Read more

Thanksgiving

Marxist Bubbles And Taleb’s Turkey: It’s Going To Be An Awkward Thanksgiving

Over a third and growing quickly. That’s the share of the market that’s now comprised of blind sheep passive indexers.

That much passive money is nothing to sneeze at. Call me old-fashioned, but I was originally led to believe that the function and role of markets in a capitalist society was to direct capital to its most productive end — you know, Smith’s “Invisible Hands” and the productivity/profit link and all that jazz.

So what happens when instead of being deployed by thinking profit-driven investors… a growing portion of a nation’s savings are invested with the same diligence generally utilized by a co-worker choosing donuts for his office mates: “Umm…yeah, I’ll take two dozen of whatever you got? Read more

USD Currency

Liquidity Crisis? What The New SEC Money Market Fund Regulations Mean For The Financial System

Things could get real interesting in the next few months.

On Oct. 17th a new SEC rule finally comes into play that will affect money market funds and liquidity across the financial sphere. There’s potential for some really big moves here. Read more

If you cant beat them, join them

SitRep – If You Can’t Beat ’em, join ’em

The markets are rallying hard! In this Market Sitrep we explore what’s ahead for U.S. equities in the near term. We examine the 3 main drivers of the rally, and then dive into why this breakout may actually have some legs. The episode finishes with a look at all the stocks we have bought or are interested in buying. Read more

Bitcoin

A Sober Look At The Cryptocurrencies Bitcoin and Ethereum

One of our more profitable trades this year was in the cryptocurrency Bitcoin. Read more

60-40 stock-bond portfolio

Podcast With Cris Sheridan of Financial Sense

Last week Macro Ops team member Tyler was invited to talk markets with Cris Sheridan on the Financial Sense Newshour. Read more

Federal Reserve Meeting

Some Thoughts Before The Fed Meeting

The Fed is back at it again on Wednesday of this week. And as with every Fed meeting, we get to play the “will they” or “won’t they” game.   Read more

european equities

Market SitRep – Buying Spree

This episode of the Market Sitrep kicks off with a look at the ECB’s corporate bond buying program — an unprecedented central bank intervention that will hurt more than it will help. Next we take a look at Belgian equities which broke out to new highs and explain why the breakout is probably a false move. We finish up with a discussion of the “bad news is good news” effect. The central bank narrative is still controlling markets, but how long will it hold up?

Do you think the new addition to the ECB’s easing program will work? Let me know in the comments.

A link to the pdf presentation can be found here.

 

 

Failure of 60/40 allocation

The Standard 60/40 Stock & Bond Portfolio Won’t Survive The Next Decade

Everyone’s familiar with the classic 60/40 investment portfolio. If you’ve ever dealt with financial advisors, this is the standard allocation they’ll recommend. 60% of your money in the stock market, and 40% in bonds. Read more