• Pivotfarm
    08/01/2014 - 12:04
    As the slide starts and the stock markets open in the red on the 1st August , it’s now time to take into consideration what it is that will save you on the floor from losing the house, the wife and...

Exchange Traded Fund

Tyler Durden's picture

Making $400,000 Per Hour, The Best Paid Hedge Fund Manager In 2013 Was...





When it comes to returns, 2013 will be best remembered as the fifth consecutive year in which the S&P 500, lead by Chief Risk Officer and Portfolio Manager Ben Bernanke (replaced by Janet Yellen in 2014 following a bumper 30%+ year), outperformed about 90% of all hedge funds, which as the recent beta blow up has shown, have virtually no original "alpha" ideas, and all merely piggyback on the same high beta "greater fool", hedge fund hotel trades and/or lever on beta as much as their Prime Broker will allow them (in many cases quite a lot). And yet, hedge fund investors were perfectly happy to keep handing over 20% of their upside and paying a 2% management fee when they could have generated the same returns for free by simply buying the SPY ETF. How happy? According to a just released ranking by Institutional Investor magazine, The 25 top earners of 2013 raked in a total of $21.15 billion.

 
Tyler Durden's picture

The Complete Ira Sohn Conference Post-Mortem





From 110 slides of Ackman-inspired Fannie Mae bullishness to Tudor-Jones "Central Bank Viagra", and from Jim Grant's "Buy Gazprom because it's the worst-managed company in the world" to Jeff Gundlach's housing recovery bearishness and "never seeing 1.5 million home starts ever again"... there was a little here for every bull, dick, and harry at the Ira Sohn conference. Perhaps noted behavioral psychologist said its best though: "be careful about the quality of advice you get."

 
testosteronepit's picture

The Last Two Times This Happened, The Stock Market Crashed





It happened in 2000 and 2007. Spectacular consequences! Now it happened again. And beneath the blue-chip highs, parts of the market are already crashing.

 
Tyler Durden's picture

Eric Sprott On The Implications Of The "Chinese Gold Vortex"





After a long and agonizing winter which was attributed to the so-called “Polar Vortex”, we thought it would be appropriate to highlight for precious metal investors the implications of what we call the “Chinese Gold Vortex”. Over the past year, we have been very vocal about what we consider an aberration: the complete disconnect between gold supply and demand fundamentals and the actual price of the metal.

 
Tyler Durden's picture

Frontrunning: April 16





  • Ukraine Says Russia Exporting ‘Terror’ Amid Eastern Push (BBG)
  • Civil War Threat in Ukraine (Reuters)
  • China Shoe Plant Strike Disrupts Output at Nike, Adidas Supplier (BBG)
  • Mt Gox to liquidate (WSJ)
  • Ex-Co-Op Bank Chairman Charged With Cocaine Possession (BBG)
  • Goldman Sachs plans to jump-start stock-trading business (WSJ)
  • Credit Suisse first-quarter profit falls as trading tumbles (Reuters)
  • U.K. Unemployment Rate Falls to Five-Year Low (BBG)
  • Lawmakers Back High-Frequency Trade Curbs in EU Markets Law (BBG)
  • Yahoo's growth anemic as turnaround chugs along (Reuters)
  • Spain ETF Grows as Rajoy Attracts Record U.S. Investments (BBG)
 
Tyler Durden's picture

5 Things To Ponder: Is This "THE" Correction?





"The current levels of investor complacency are more usually associated with late stage bull markets rather than the beginning of new ones. Of course, if you think about it, this only makes sense if you refer back to the investor psychology chart above. The point here is simple. The combined levels of bullish optimism, lack of concern about a possible market correction (don't worry the Fed has the markets back), and rising levels of leverage in markets provide the "ingredients" for a more severe market correction. However, it is important to understand that these ingredients by themselves are inert. It is because they are inert that they are quickly dismissed under the guise that 'this time is different.' Like a thermite reaction, when these relatively inert ingredients are ignited by a catalyst they will burn extremely hot. Unfortunately, there is no way to know exactly what that catalyst will be or when it will occur. The problem for individuals is that they are trapped by the combustion an unable to extract themselves in time."

 
Tyler Durden's picture

The Deer Is Back - Nasdaq Suffers Biggest Loss Since Nov 2011





But the pretty people on TV said the Fed Minutes proved they were the most dovish ever and initial claims hit recovery lows... What a total disaster - Equity markets peaked within a few minutes of the open and never looked back - yesterday's "Fed Cat Bounce" gave way to Really Red Thursday... with the Nasdaq and Russell 6.5% from their recent highs (and the S&P 3.5% off), we suspect a "markets in turmoil" special on business media any moment...

 
Tyler Durden's picture

Asian Stocks Tumble After China, Japan Disappoint On Additional Stimulus





The last time global equity markets were falling at this pace (on a growth scare) was the fall of 2011. That time, after a big push lower, November saw a mass co-ordinated easing by central banks to save the world... stock jumped, the global economy spurted into action briefly, and all was well. This time, it's different. The Fed is tapering (and the hurdle to change course is high), the ECB balance sheet is shrinking (and there's nothing but promises), the PBOC tonight said "anyone anticipating additional stimulus would be disappointed," and then the BoJ failed to increase their already-ridiculous QE (ETF purchase) programs. The JPY is strengthening, Asian and US stocks are dropping, CNY is weakening, and gold rising.

 
Tyler Durden's picture

Stocks Turn Red For The Year While Nasdaq Smashed Most Since October 2011





Early hope faded into middle-of-the-day-despair which was rescued (briefly) on a sea of JPY carry (which dragged the S&P all the way to VWAP) then crashed and burned on the shores of dismal reality into the close. USDJPY was in charge and 103 was the magic number that kept the S&P 500 from breaking its 50DMA (for now). The Nasdaq and Russell were ugly as Biotechs' early ripfest gave way. This is the biggest 2-day swing lower in the Nasdaq since Oct2011. Treasuries rallied modestly on the day (-2bps) as the USD weakened 0.25% led by EUR strength. Copper rallied from an overnight dump low but gold (~$1300), silver (~$20), and oil (~$100) all clustered around -0.5%. VIX tested up to 16 intraday but was rammed lower as the 330 ramp too early to hold and merely enabled VWAP sellers out... and we closed near the lows...

 
Asia Confidential's picture

Is Inflation Next?





Market consensus is that deflation remains the greatest threat to the global economy. But that's ignoring signs of impending inflation, particularly in the US.

 
Tyler Durden's picture

Soaring Chinese Gold Demand And Its Geopolitical Strategy





Analysis of the detail discovered in historic information in the context of China's gold strategy has allowed us to make reasonable estimates of vaulted gold, comprised of gold accounts at commercial banks, mine output and scrap. There is also compelling evidence mine output and scrap are being accumulated by the government in its own vaults, and not being delivered to satisfy public demand. We believe that China is well on the way to having gained control of the international gold market, thanks to western central banks suppression of the gold price, which accelerated last year. For its geopolitical strategy to work China must accumulate large quantities of bullion... it appears well on its way to dominance of the physical gold markets.

 
Tyler Durden's picture

Guest Post: The Screaming Fundamentals For Owning Gold





The reasons to hold gold (and silver), and we mean physical bullion, are pretty straightforward. So let’s begin with the primary ones:

  1. To protect against monetary recklessness
  2. As insulation against fiscal foolishness
  3. As insurance against the possibility of a major calamity in the banking/financial system
  4. For the embedded 'option value' that will pay out handsomely if gold is re-monetized

The punch line is this: Gold (and silver) is not in bubble territory, and its largest gains remain yet to be realized; especially if current monetary, fiscal, and fundamental supply-and-demand trends remain in play.

 
GoldCore's picture

Gold At 4 Month High - Concerns About China Property Bubble Grow





Concerns about the possibility of the Chinese property bubble bursting affecting economic growth in China and the world is supporting gold.

 
Tyler Durden's picture

When Risk Is Not In Parity: Bridgewater's Massive "All Weather" Fund Ends 2013 Down 3.9%





Just over a year ago, in one simple graphic, we showed why Bridgewater, which currently manages around $150 billion, is the world's biggest hedge fund. Quite simply, its flagship $80 billion Pure Alpha strategy had generated a 16% annualized return since inception in 1991, with a modest 11% standard deviation - returns that even Bernie Madoff would be proud of.  And, true to form, according to various media reports, Pure Alpha's winning ways continued in 2013, when it generated a 5.25% return: certainly underperfoming the market but a respectable return nonetheless. However, Pure Alpha's smaller cousin, the $70 billion All Weather "beta" fund was a different matter in the past year. The fund, which touts itself as "the foundation of the "Risk Parity" movement", showed that in a centrally-planned market, even the best asset managers are hardly equipped to deal with what has largely become an irrational market, and ended the year down -3.9%.

 
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