"February should have been a better month for stock-picking, with pair-wise stock correlations continuing to fall to their lowest levels since 2000. But a better backdrop for stock-picking does not necessarily equate to fund managers making the right picks."
An internal White House strategy review on North Korean options includes the possibility of both military force and regime change to counter the country’s nuclear-weapons threat, the WSJ reports, a prospect that has some U.S. allies in the region on edge.
What was most interesting in the latest Beige Book was not the comprehensive summary but the anecdotes revealed by the various districts among them concerns about the stronger dollar, worries about Obamacare repeal, Atlantic City casino revenues, retailer fears about online competition, shipping container volumes, the impact of immigration policy on labor supply and even a sharp drop in Broadway theater attendance.
"I actually never thought that that was – I never considered the question, even a possibility. I thought, 'Oh, gee, I don't have experience. I don't know enough. I don't...' And now I'm thinking, 'Oh! Oh!'"
The Dallas Police and Fire Pension is declaring "victory" over a modest $2mm settlement from its former real estate investment advisor, CDK Realty, as one city council member blasted the award saying he was “shocked CDK got off the hook for a mere $2 million considering the amount of fees they bilked out of the system over the past decade.”
"No matter what the economic leaders say, these actions prove to me and many others that their mental models of the world have failed. They’re able to hide behind authority and academic vocabulary which if put in plain terms for the lay person could be described as theft, ponzi, tyrannical and moronic."
Population growth, economic growth, and resultant energy consumption are inexorably slowing. The Federal Reserve knows it can not stop this and is simply slowing the inevitable with interest rate cuts to incent greater consumption via skyrocketing credit/debt...
"All of the fund’s asset classes generated positive returns, but it was the strong equity return in the second half of the year that drove the fund’s results. After the presidential election in the U.S., markets priced in higher growth and inflation in the global economy."
"Dear President Trump, can you stand up to the orthodoxy that’s robbed the business cycle of its very cyclicality? Are you man enough to populate the Fed with leaders who are so strong there’s no need to audit the out-of-control institution?"
Debt in China has increased dramatically in recent years, accounting for roughly one-half of all new credit created globally since 2005. The country’s share of total global credit is nearly 25%, up from 5% ten years ago.