Donald Trump has pulled off an astonishing upset to win the White House, securing at least 288 electoral votes as of 3:30 a.m. EST to defeat Hillary Clinton.
Mean reversion is as applicable to trading costs as it is to valuation. Today’s costs to trade are at 56-year historical lows; they are due to rise soon. Now is the time to position your portfolio ahead of expected higher costs to trade and lower equity prices.
We expose the crafty game that Wall Street and corporate investor relations departments play to put a positive spin on earnings releases and give the impression that stock prices are cheap based on forward-looking earnings expectations.
Has the institution of the Nobel Prize in economics been a cause of the global economic woes of the last 20 years – its financial crises, its economic slowdowns and its increasing intra-national inequalities? In their recent book, The Nobel Factor: The Prize in Economics, Social Democracy, and the Market Turn, authors Avner Offer and Gabriel Söderberg make a good, if somewhat haphazard, case that it has.
It took a long time for widening inequality to have an impact on politics, as it suddenly has done in recent years. Now that it is a central issue, national economic priorities will need to shift substantially to create more equitable, inclusive societies, or electorates could embrace explosive political alternatives.
Currently, with equity markets sustaining near all-time highs, there is a common perception that the equity market is “running.” As a result, many investors harbor concern of getting left behind. The reality is that equity markets are not surging, or “running,” and have actually been consolidating for almost two years.
Over the 12 months to mid-2016, global equities witnessed abnormal volatility driven by both macro and micro concerns. This reflected a more complex investment setting.
We really do not have health care as much as sick care since the focus is on treatment versus prevention. But our sick care is in serious condition. For those individuals who do not have employer coverage – which is not a small number – its condition is critical. While I am steadfast in my thoughts on how a healthcare system could be designed and work for everyone, the current condition of our sick care is making me sick.
For some investors, any mention of US mortgages takes them back to the dark days of 2008. But today’s mortgage bonds aren’t the devils some market participants make them out to be.
Can options cost-effectively enhance investment returns? The answer depends partly on whether the investment manager takes an active view and partly on whether the options can be used efficiently to address an investor’s risk preferences.