Institutional Investors

One Trader's Advice If The "Ultimate Breakdown Is Likely To Be Sudden, Intense And Large"

When it’s clear the game has become rigged, it’s easier and less risky to stop playing that game, and go play a different game somewhere else... There is a huge disincentive to step boldly in the direction of sanity... which serves as a dangerous feedback loop to reinforce a false narrative that everything is awesome and under control.

The Illusion Behind Stock Buybacks - A Simple Test

Investors may be dazzled by the earnings-per-share gains that buybacks can achieve, but who really wants to own a company in the process of liquidating itself? Maybe it’s time to ask harder questions of corporate executives about why their companies aren’t deploying their precious resources more effectively elsewhere.

The Bank of Japan Will Be The Top Shareholder Of 55 Companies By The End Of 2017

With the BOJ already a top-five owner of 81 companies in Japan’s Nikkei 225 Stock Average, the BOJ is on course to become the No. 1 shareholder in 55 of those firms by the end of next year. Just as insane, the central bank owned about 60% of Japan’s domestic ETFs at the end of June. This is up from just over half as of a few months ago suggesting that the BOJ is gobbling up equities at an unprecedented pace.

One Simple Reason Why Gold Can Still Jump 50%

Stocks are very expensive. Bonds are insane. Bank rates are negative for many large investors. These trends are pretty clear - there will likely be more debt, more money printing, more capital controls, and more monetary insanity in the future...And if you understand them, the case for owning at least a small amount of gold is obvious.

Bridgewater's Culture Of "Probing" - Sex Scandal Strikes World's Largest Hedge Fund

Employee files sexual harrassment complaint where Bridgewater is described as a  “cauldron of fear and intimidation" where employees are exposed to constant video surveillance and encounters with patrolling security guards that "silence" employees who do not fit the Bridgewater mold. In light of these new developments, we're left wondering which particular "values" Comey carried with him to the FBI and exactly how far he "spread" them within the organization.

Chinese Stocks Sink Over Fears Regulators Will Curb Wealth Management Schemes

Overnight China's Banking Regulatory Commission drafted new rules curbing the nation’s multi-trillion market for wealth management products, which was not taken well by the local stock market, leading to a plunge in stocks in early Chinese trading, before rebounding at the close of trading. China's ChiNext index of smaller companies sank as much as 5.5%.

BofA Finds Something Odd: With The S&P At Record Highs, Traders Have Never Been More Nervous

A strange paradox emerges when flipping though the latest BofA Fund Managers' Survey: with the S&P trading at all time highs, investor buying of protection against sharp decline in stock market at record high, something which would not be happening if the market was "normal" and if traders expected a continuation of the recent upward trend in stocks.

"We Shouldn't Be At New All Time Highs" - Even Larry Fink Doesn't Get It

 "I don't think we should be at new [stock] highs... We are seeing investors worldwide pausing, we are seeing quite a large sum of money being pulled out of equities over the last year. And yet we are at record highs. That's just a sign of how much money is being taken out by central banks in their bond purchases, and stock repurchases from companies."