Henderson

Bill Gross: "All Markets Are Increasingly At Risk"

"You have the potential for low asset returns in which the now successful strategy of “making money with money” is seriously threatened. How soon this takes place is of course the investor’s dilemma, and the policymakers’ conundrum. But don’t be mesmerized by the blue skies created by central bank QE and near perpetually low interest rates. All markets are increasingly at risk."

Frontrunning: February 13

  • 'Trump trades' on boost to economic growth come back with a bang (Reuters)
  • Trump's national security adviser Flynn trying to survive crisis (Reuters)
  • White House Is Sifting Options on Immigration Ban (WSJ)
  • North Korean Nuclear Ambitions to Be Defining Issue for Trump (BBG)
  • Netanyahu opposes Palestinian state, Israeli minister says ahead of U.S. visit (Reuters)
  • Speed Limits on Trump’s Infrastructure Drive: Federal Laws, Rare Species and Nimbys (WSJ)

The Islamization Of Britain In 2016: "More Backwards Than Some Parts Of Pakistan"

More than 100,000 British Muslims sympathize with suicide bombers and people who commit other terrorist acts, according to a 615-page survey. Only one in three British Muslims (34%) would contact the police if they believed that somebody close to them had become involved with radical Islam. Teaching children fundamental British values is an act of "cultural supremacism," according to the National Union of Teachers.

Global Bond Rout Returns With A Vengeance, Sending 10Y Yields To Highest In Over Two Years

The global bond rout returned with a bang, sending 10Y US Treasury yields as much as six basis points higher to 2.53%, the highest level in over two years. The selloff accelerated following Saturday's agreement by NOPEC nations to slash production, leading to rising inflation pressures. At last check, the 10Y was trading at 2.505%, up from 2.462% at Friday and on track for its highest close since September 2014.

US Home Prices Rise Above July 2006 Levels, Hit New Record High

Almost exactly ten years after the last housing bubble burst, unleashing a dramatic crash in US real estate prices today Case Shiller reported that as of September, its Index covering all nine U.S. census divisions, surpassed the peak set in July 2006 as the housing boom topped out, and in doing so the average home price has now climbed back above the record reached more than a decade ago.

Globalization Is Done

The end of growth exposes the stupidity and ignorance of all but (and even that’s a maybe) a precious few (of our) ‘leaders’. We are transcending into an entirely different stage of our lives, our economies, our societies. Growth is gone, it went out the window long ago only to be replaced with debt. And that’s going to take a lot of getting used to. But there’s nothing that says we couldn’t see it coming.