Herd Mentality

Tyler Durden's picture

George Soros Warns "China Resembles US In 2008", Hard Landing "Practically Unavoidable"





China's massive credit growth in March (and $1 trillion surge in total social financing in Q1) is a "warning sign" according to billionaire George Soros, "because it shows how much work is needed to stop the slowdown." Speaking at an event in new York this evening, Soros commented on "troubling developments" in China, the anti-corruption drive's impact on capital outflows and the real-estate bubble "feeding on itself." His conclusion, rather ominously, was that despite all the naysayers and fiction-peddlers, China "resembles US in 2007-8," before credit markets seized up and spurred a global recession.

 
Tyler Durden's picture

Peter Schiff Slams Managers' "Denial... And Mindless Optimism"





The Winter of 2015-2016, which came to an end a few weeks ago, has been officially designated as the mildest in the U.S. in 121 years according to NOAA. While this fact will certainly add a major talking point in the global warming debate, it should also be front and center in the current economic discussion. The fact that it isn’t is testament to the blatantly self-serving manner in which economic cheerleaders blame the weather when it’s convenient, but ignore it when it’s not.

 
Tyler Durden's picture

The Unintended Consequences Of Greenspan's "Frankenstein" Markets





It is common knowledge by now that Federal Reserve Chairman Alan Greenspan oversaw, enabled and approved of, a major transition in the US economy. Following markets on the escalator up and taking the elevator down together set a precedent that created a Frankenstein monster, which socialised losses through the printing press while privatizing profits. Such a system was and still is unsustainable as it more or less ensures valuations decouple from underlying fundamentals.

 
Tyler Durden's picture

"Where Are The Bubbles?" - UBS Shows Them All In One Chart





As has become increasingly obvious to many, unconventional central bank policies have resulted in an unprecedented level of crowding – a "herd mentality" to trade positioning on the basis of a similar theme – throughout global equity markets. UBS quant team guages the "barometric pressure of developing investment bubbles" across various factors and looks for the inflection points with the dollar, oil, and politics as the main catalysts.

 
Tyler Durden's picture

Don't Confuse Genius With A Bull Market - 10 Steps To Redemption





Individuals are consistently promised that investing in the financial markets is the only way to financial success. After all, it’s so easy. Financial pundits across the country state the one simply buys a basket of mutual funds and they will make 8, 10 or 12% a year. Don’t confuse genius with a bull market. It’s not hard to make money in a roaring bull market. Keeping your gains when the bear comes prowling is the hard part.

 
Tyler Durden's picture

This Is What Central Bankers Think Of Retail Investors





A report on China's stock market crash authored last year by former senior officials, including former central bank vice governor Wu Xiaoling, said Chinese retail investors are short-sighted, have a weak investment philosophy and a herd mentality.

 
Tyler Durden's picture

"If You're Not Confused, You Don't Understand Things Very Well"





If you believe the global economy is doing great and stocks are cheap, stop reading now; this post is not for you. We promise to write one for you at some point when stocks are cheap and the global economy is breathing well on its own - we just don’t know when that will be. But if you believe that stocks are expensive - even after the recent sell-off - and that a global economic time bomb is ticking because of unprecedented intervention by governments and central banks, then keep reading.

 
EconMatters's picture

Here is How You Fix the Oil Market





But here is a giant freebie for all those stupid, clueless oil executives out there in North America.

 
EconMatters's picture

The Oil Market





I bet OPEC never factored into their analysis the lifting of the US Oil Exporting Ban in 2015 after being a non-starter for so many decades.

 
Tyler Durden's picture

7 Investment Lessons From Mom





"Don't run with sharp objects" ... "If everyone jumped off the cliff - Would you do it too?" ...and "Don't talk to strangers!"

 
EconMatters's picture

Buy the Rumor and Sell the News Alive in Forex Markets





They aren`t about to stand for a strong dollar in a world where it is a competitive advantage to devalue currencies from a multinational profits, tourism and global trading perspective.

 
Tyler Durden's picture

Weekend Reading: Rooting For The Bull?





This past week has seen a continuation of market volatility unlike anything witnessed over the last several years. Of course, this volatility all coincides at a time where market participants are struggling with a global economic slowdown, pressures from China, collapsing oil prices, a lack of liquidity from the Federal Reserve and the threat of rising interest rates.  It is a brew of ingredients that would have already likely toppled previous bull markets, and it is only by a hairsbreadth the current one continues to breathe.

 
Tyler Durden's picture

Similarities Between China's Stock Market Crash And 1929 Are Eerie





For students of history, the China stock market crash looks eerily familiar. It’s playing out much like the Wall Street stock market crash of 1929. One of the factors fueling the soaring stock market of the 1920s was an influx of new, financially unsophisticated investors who saw the rising numbers and saw an opportunity for quick and easy profits. And that’s exactly what’s happened in China over the past year or so.

 
Tyler Durden's picture

Hong Kong Insanity Launches Exchange Operator's Shares Into Orbit





Because the only thing more exciting than betting on the continuation of a margin-fueled, self-feeding domestic mania is betting on the exchange where the maniacs are trading...

 
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