Fund Flows

China Unveils Plan To Combat Trump Tax Reform: “We’ll Have Tough Battles"

Beijing is putting in place a contingency plan to combat consequences for China of U.S. tax changes as well as expected interest-rate increases by the Federal Reserve. Under the plan the PBOC will "deploy a combination of tools—higher interest rates, tighter capital controls and more-frequent currency intervention—to keep money at home and support the yuan."

This Will Be The Biggest Buyer Of Stocks In 2018

Corporate buybacks will drive US equity demand in 2018. Corporate equity demand will rise by 3% to $590 billion next year. Increased authorizations and high cash balances should more than offset headwinds to buybacks from high valuations...

A Brief History Of Tail Risk: From LTCM, ABX, CDS, To VIX

"While I think valuations may be stretched, my bigger concern is that the real risk lies in market structure – more specifically to volatility and correlation strategies that quickly propagate through the financial markets with the aid of algorithmic trading..."

"Friends Don't Let Friends Buy VIX"

"You know a trade is getting crowded when my parents start asking about it.  You know just how one sided something is when people think that even Chuck Norris can’t make money buying vol... I think selling VIX is very crowded and fraught with danger."

Nasdaq Crack: Sharp Slowdown In Tech Funds

One doesn't need to see the recent fund flows to know that the tech euphoria of the past seven months appears to be ending - one look at the recent underperformance of the Nasdaq is sufficient - but it helps.