A small band of Wall Street skeptics are moving to protect their credit portfolios against a market priced like nothing in the economy could possibly go wrong.
Oaktree Capital Group LLC co-founder Howard Marks says investors who made a fortune in the era of easy money should not expect the same strategies to deliver such exceptional returns in the future.
Quant funds that make money surfing the momentum of markets saw a promising year slip away in 2024 when big bouts of volatility lashed everything from Japanese stocks to cocoa futures and Treasuries.
From Wall Street funds to small-time day traders, those who dared to bet big on Elon Musk’s business empire are closing out the year with hefty payoffs, as Donald Trump’s US election win turbocharges the fortunes of the world’s richest man.
All year, a slew of Wall Street pros have questioned the durability of an indiscriminate risk rally that has fattened stock prices by trillions of dollars, sent Bitcoin soaring, fueled a credit bonanza, and more.
Take a snapshot of markets right now, and it’s a picture of health. Stocks are at records, corporate bonds show no signs of worry and commodities remain buoyant on global economic optimism.
Quant traders at Man Group Plc are betting that unlocking the secrets of private markets will give them an edge in trading public stocks.
Traders are lavishing billions of dollars on quant-powered stock trades, boosting an investing style that’s struggled to gain traction in an era when simple bets on traditional large-cap indexes have paid off handsomely.
With inflation up, economic growth down and two-year Treasury yields testing 5%, Bill Gross sensed the music in markets was fading, and said it was time to get over the likes of the Magnificent Seven.
Signs that inflation has yet to release its grip on markets have simmered for weeks. Now they’re boiling over after Wednesday’s hotter-than-forecast consumer price index sent stocks and bonds reeling.
A steady march higher in markets was snapped by a stretch of jarring volatility as traders gave hints there’s a limit to their appetite for hot economic data.
Ever since the Federal Reserve began its policy-tightening campaign, Jerome Powell has been happy to ignore one form of inflation: Rising asset prices.
For a lesson in the perils of being a skeptic on Wall Street when everyone else is a buyer, consider Rob Arnott, who made a sensible case five months ago that Nvidia Corp. had become a bubble.
How many Wall Street buzzwords can you fit into one security? The limit is being tested by a new breed of options-fueled exchange-traded funds making inroads with the retail crowd.
The latest warning for investors unleashing dovish monetary wagers across the board: Two thirds of Bloomberg Markets Live Pulse respondents said that betting on early monetary easing is the “most foolish” among popular trades heading into 2024.
A New York money manager has netted a 64% gain from a strategy riding the big plunge in volatility across the stock market in this expectations-busting year on Wall Street.
The arrival of a US investment strategy that offers amped-up stock leverage is putting a spotlight on an industry popular with retail traders, but prone to extreme volatility and frequent blow-ups.
Jeremy Grantham is a famous bubble hunter, quick to point out speculative excess on Wall Street and beyond.
It’s the major casualty of November’s sizzling stock rally: Investor caution.
Professional traders entered November wagering Jerome Powell’s campaign to tame inflation was a long way from being won. Now they’re being forced into risky bets that the battle is over.
Worries about an economic downturn aren’t enough to dissuade market participants from being bullish on risky debt as their top contrarian trade, according to the latest Bloomberg Markets Live Pulse survey.
Momentum has turned in tech stocks and investors awakening from dreams of artificial-intelligence nirvana are back to a less grandiose concern: When will the selling stop?
As the cross-asset sell-off engulfed Wall Street last week, hedge funds ramped up their bets against stocks while one measure of their market positioning plunged the most since the March 2020 crash.
An electronic trading revolution is finally coming to corporate bonds, years after reaching other financial markets.
The world’s most powerful central bankers have vowed in unison to keep interest rates higher for longer if necessary to tame inflation.
All the chatter back in December was that 2023 was to be the “year of the bond.” And for a brief moment or two in the winter, that call — and the economic doom and gloom that underpinned it — looked right.
Investors have just turned back the clock on the Fed’s tightening campaign and cast aside the Fed fears that ruled them for 15 months.
Two brutal weeks for banks have mostly scuttled hopes in markets that a US recession can be avoided. But a close read of the cross-asset landscape still finds investors unconvinced the stress portends a genuine financial crisis.
Money managers have cut $300 billion of bearish bets and are now positioned more in line with historic norms — robbing the market of pent-up demand just as the Federal Reserve warns its inflation-fighting battle is far from over.
The triumphant comeback of quant-investing strategies on Wall Street is suddenly on shaky ground as virtually all of 2022’s hottest market trends get derailed in the new year.
Once-hated world stocks, bonds laced with interest-rate risk and even deadbeat crypto coins have just closed out a big new-year rally.
The America First trade that sent money gushing to the US over the past three years is finally starting to lose its shine as market optimism gravitates back to unloved markets outside of the world’s biggest economy.
Professional speculators with billions in bearish trades on the line endured a rough ride after Tuesday’s report on US consumer prices brought the latest sign that the Federal Reserve is making progress in its battle against inflation.
The steady drumbeat of warnings that the American economy is careening toward a recession finally struck a nerve on Wall Street.
Under the surface of one of the quietest weeks on Wall Street all year, some money managers are renewing speculative bets, hoping against hope that a more friendly -- or at least less-hostile -- Fed, is back in their corner.
On the most optimistic corners of Wall Street, promising inflation data over the past week or so suggest the Federal Reserve may accomplish a soft landing after all.
Fast-money quants were effectively forced to buy an estimated $225 billion of stocks and bonds over just two trading sessions, as one of Wall Street’s hottest strategies in the great 2022 bear market shows signs of cracking.
Dip buyers wagering that the era of central-bank hawkishness has peaked got a reminder Wednesday that they are playing a dangerous game.
For years, asset allocators had it easy: Buy the biggest American tech companies and watch the returns rack up. Those days are gone, buried under a crush of central bank rate hikes that are rewriting the playbooks for investment managers across Wall Street.
If Wall Street is right, the big revival in value investing in the post-lockdown era is in danger of falling apart all thanks to the resurgent bond market.
US consumer prices surged to a 40-year high, defying expectations that gains would start to moderate after the Federal Reserve began tightening.
The Bloomberg Dollar Spot Index has trumped all other assets this month, notching a 0.6% advance at a time when stocks and bonds are tumbling. Investors have poured cash into an exchange-traded fund tracking Treasury bills for five weeks, clocking up the biggest inflows since 2020.
Die-hard dip buyers are bracing for even more volatility -- and bigger, more enticing dips -- in the run-up to Christmas.
