Archive

May 5th, 2014

The Cruelest Month: April Was A Bloodbath For Most Hedge Funds

April was supposed to be, if only based on history, the strongest month for stocks. Instead, it ended up being a hedge fund bloodbath. Of the 40 or so brand name hedge funds we track, only 3 outperformed the S&P, and 33, or over 75%, generated a negative return. Which is to be expected in a month in which the highest beta stock blew up, and an entire industry which now clearly uses alpha and beta interchangeably (as long as it means following the leader right into the comfortable confines of the hedge fund hotel), is stuck with the bill.

US F-15 Intercepts Russian Strategic Bomber Near Guam

It appears Russian military activities are picking up around the world. As AP reports, the commander of U.S. air forces in the Pacific is reporting a significant increase in activities by Russian planes and ships in the region; adding that "there had been long-range Russian air patrols to the coast of California ... and a U.S. F-15 fighter jet intercepted a Russian strategic bomber that had flown to Guam."

Martin Armstrong Exposes The Saddest Side Of The Ukrainian Revolution

Ukrainian soldiers have nothing. People had been donating money to support them. While the West's injection of career politicians only replaced the head - Yanukovich - what is going on now is the corruption the people were revolting against is still in  the first place. Money donated to the soldiers has not been getting to them. Now the Ukrainian people are simply bringing food to their own troops because the corruption takes the money. Ukraine's soldiers have taken to Facebook to ask for help...

Stocks Avoid Sinko De Mayo With Ye Olde JPY Dump-And-Pump

Thanks to the miracle of VIX slamming, USDJPY-stop-running, CBOE breaking, US equity market opening, "we're not worried about no stinking Ukraine civil war or Chinese economic collapse", low volume levitation, stocks knee-jerked off early dumping lows to recover comfortably into the green today. Not everything was exuberant though (as Trannies and the Russell 2000 ended red - bouncing once again off its 200DMA). Gold gained almost 1% today (back over $1310) for its best 2-days since January. The USD closed unch (with notable weakness in SEK). USDJPY ranged down below 102 and rammed stops to lead the charge higher in stocks (even with Japan closed for 2 days). Stocks tracked JPY but benefitted from a dead-cat-bounce in Treasury yields. VIX closed higher on the day (unable to regain the late-slam from Friday). AAPL regains $600 and Biotechs bounced 4.5% - so everything's fixed.

The Eight Characteristics Of Stock Market Manias

This time is different - check; Moral Hazard - check; Easy Money - check; Overblown growth stories - check; No valuation anchor - check; Conspicuous consumption - check; Ponzi finance - check... and, of course, Irrational exuberance: check!

Are They Lying, Or Just Stupid?

There comes a point in the destiny of a failing nation when official lying is no longer distinct from official stupidity. We’ve crossed that boundary in the USA. It pays to remember that societies get what they deserve, not what they expect.

Slavyansk Clashes Kill 20 Rebels, Injure Dozens Of Civilians; White House "Extremely Concerned" Unrest Is Spreading

Ongoing military operations in Slavyansk have left at least 20 rebels dead and dozens more civilians injured according to Interfax.

*SLOVYANSK CLASHES KILL 20 REBELS, MANY CIVILIANS WOUNDED: IFX

As RT reports, fatalities are on both sides with little progress reported one way or the other. The White House says it's "extremely concerned" by the deteriorating situation in southern Ukraine. Perhaps more important for the average American citizen, Klitschko has decided to postpone his planned wedding to Hayden Panettiere due to the conflict... now it's getting serious!!

San Fran Fed Asks "Is It Still Worth Going To College?"

The last time the intellectual titans of the San Fran Fed, which have made a living out of asking probing, kindergarten-level questions and then spending tens of thousands of taxpayer funds to answer them, performed in depth inquiry into a topic was about a month ago when it asked "How Important Are Hedge Funds In A Crisis." To its dismay, it found the answer to be "very." Today, the intellectual titanism continues when the regional Fed, which Janet Yellen called her home for so many years, asks (and answers), "Is It Still Worth Going to College?"