Markets

Andy Lees argues insufficient dollars are getting into the system from the US current account deficit to finance the growth in global trade, so the stock of these international dollars is falling relative to the value of world trade. He…

The Fed is stuck at permanent zero and that means the carry trade is on. If we did have another panic, those swap lines would be handy because the Fed would again become the global lender of last resort.

Over the rest of this year, PBOC will continue to use a combination of policy rate hikes, reserve requirement hikes, and currency strength to help limit inflation pressures. How much more can we expect, and where do we stand in the process?…

Apparently, market professionals are willing to accept short-term government paper at auction with no discount through four weeks.

Moody's has "heightened concerns that Portugal will not be able to fully achieve the deficit reduction and debt stabilisation targets". They conclude that will result in "growing risk that Portugal will require a second round of official…

Yields are incredibly low in the investment grade space. So that has put pressure on managers to get some yield pick up. Could European high yield be it, not just for European fund managers but for Americans as well?

Below is a nice little interview with Hedge Fund manager Hugh Hendry . The headline quote was his way of showing us he doesn’t take himself too seriously. But his underlying message is that he believes it pays to really massage the most…

The mitigating factors are the recent manufacturing data and the pickup in small business credit. I especially like to see small business with access to and take up of credit because that could mean renewed hiring. The jobless claims…

The latest Case-Shiller Home Price Index update has come out. The data show an uptick in home prices on an unadjusted basis from March to April.

In Montier’ view, “value investing is the only risk-averse way of investing” that addresses tail risk. He identifies, value risk, fundamental risk and financial risk as three main risk characteristics value investing captures. The subtext…