Institutional Investors

"Metals Traders On Red Alert" - Chinese Commodity Bubble 2.0 Just Imploded

Industrial metals commodity prices plunged by the most since March in the last 2 days as China’s exchanges (once again) clamped down on speculation by tightening trading rules. As Bloomberg reports, for the second time this year, trading has exploded on the nation’s exchanges, pushing prices of everything from zinc to coal to multi-year highs and sending authorities scrambling to deflate the bubble before it bursts.

October Was The Worst Month For Hedge Funds Yet This Year

The breadth of redemption pressure in October was the industry’s largest in 2016 with 61% of reporting funds estimated to have net outflow during the month. Essentially, flows in October were poor not necessarily because investors redeemed from the industry, "but no one is really allocating with any enthusiasm."

Why "Everything's Changed" - One Hedge Fund's Disturbing Take On Markets Under Trump

"Everything’s changed... Trump will provide the excuse for everyone to finally capitulate, and embrace this bull market. But the seeds of the next bust will be sown in his first year. The volatility will be amazing. And by the time his term ends, the S&P will be below where it started. That’s how all bull markets eventually end."

"Brace For Economic Disruption" SocGen Sees "Sharp Rise In Gold" As India Plans Cap On Cash Holdings

India's 'de-monetization' scheme has caused chaos across the nation, and while SocGen says the government's plan may have some short-term success in curbing so-called 'black-money', investors should "brace for economic disruption" as Bloomberg reports the Indian government is considering a cap on cash holdings for individuals. As SocGen concludes, "people will now be more inclined to park their black income in gold rather than in currency."

Another Chinese Speculative Buying Frenzy In Commodities Collapses

Fool me once, shame on you; Fool me twice, I must be a Chinese commodity speculator. In a disastrous case of deja vu all over again, commodities from copper to iron ore and from rebar to coking coal have exploded higher in the past few weeks... just like they did in April/May of this year. And, as Reuters reports, just like we saw in May, the spike in volume relative to open interest has prompted exchanges to crackdown on the rampant speculation, increasing transaction fees and margins fuelling a "panic among investors," as they rush to sell.

Interview With Jim Bianco: "The Elite Opinion Does Not Count Anymore"

"The fundamental underpinnings of the long term bull market are at risk... interest rates have gotten way ahead of themselves... The market is banking on the idea that the Trump presidency is going to be a giant reflation trade... We will see if that’s what they get..."