Quantitative Easing

The Approaching Silicon Valley Meltdown

"'The Valley' (and its entire ancillary complex aka 'the disruptor class') is on the verge of receiving a wake up call, the likes of which may make the dot-com era look relatively 'stable' in hindsight..."

The Stage Has Been Set For The Next Financial Crisis

"We are in a multidimensional and fully internationalized carry trade game, folks, which means there is a very serious and tangible risk pool sitting just below the surface across world’s largest insurance companies, pensions funds and banks, the so-called 'mandated' undertakings..."

Why Australia's Economy Is A House Of Cards

"For over a quarter of a century our economy mostly grew because of dumb luck... As a whole, the Australian economy has grown through a property bubble inflating on top of a mining bubble, built on top of a commodities bubble, driven by a China bubble....Unfortunately for Australia, that “lucky” free ride is just about to end..."

Axel Merk: Tax Reform Implications For Gold

"Last week, I got several calls asking me how U.S. tax reform will impact the price of gold. If you can answer this question, you might be able to answer how tax reform will impact other assets. Let me explain..."

White House Considering Mohamed El-Erian For Fed Vice Chair

In what will come as a big surprise to many Fed watchers, moments ago Dow Jones reported that among other candidates, the White House is considering Mohamed El-Erian, Bill Gross' former partner at Pimco until the duo's infamous falling out, and one of the few people who - together with John Taylor - actually deserve the nomination.

Some Non-Hyperbolic Junk Talk

"In this day and age of Central Bank quantitative easing pushing up all financial asset prices together, the fact that bonds are declining might not be enough to cause a stock market dip, yet it might be a signal that the bid for all financial assets is wearing thin..."

GPIF Is About To Bite Back

"In essence, the BoJ engaged in a massive quantitative easing program where they printed bonds to buy stocks (through their public pension plan)... Well, guess what happened this week? The GPIF has now reached their 25% allocation to domestic stocks..."

Goldman's Top Strategist Reveals The Two Biggest Risks To The Market Today

"We’ve also seen a growing allocation of retail and institutional money into “premium chasing” quant strategies, including, for example, ETFs that sell equity vol. I think many of these developments are positive, but the associated market structure remains largely untested. So I would not rule out the risk of a glitch that triggers, say, a 5-10% correction."

Forget B.T.F.D., It's Time To B.U.T.T.

"Add all of this together, and for me, I get a bull story that is not reliant on every increasing liquidity from Central Bank quantitative easing programs. This is an honest to goodness cheap asset that finally has a catalyst. Call me naive to believe the market will finally appreciate this sort of play."

EU Shadow Rate Madness

"The current situation in Europe reminds me a lot of Japan from a couple of months ago..."

Goldman's Clients Are Becoming Increasingly Schizophrenic

"Reluctance is warranted. For one, elevated equity multiples mean that a continued rally in equities from here is heavily levered to better earnings, but the macro drivers of corporate profit margins all appear headed in the wrong direction."