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Sinking Under Two Years Of "Non-Stop Pain Trades"
With hedge funds set to report their record, 7th year of market underperformance (and a flurry of meaningless gibberish hitting once again overnight as to the purpose of hedge funds, here is the punchline: in a world in which an "all-in" Fed is Chief Risk Officer, there is no need to hedge, and when Fed loses controls no hedges will save you) who would have thought that the only right trade is doing precisely the opposite of what the "smart money" herd says it the right trade (aside from the usual place).
Well, more and more we hope, because as Bank of America points out, following the announcement of the Fed taper in December 2013, and subsequent end of QE (for now), now that excess liquidity is over, and with it excess returns, what characterizes the market is not the gains, but the losses. To wit: "YTD investor performance has been plagued by “non-stop pain trades” as liquidity expectations weaken and investment horizons shorten. For example, July/August saw the S&P 500 media sector lose $100bn of market cap in 15 trading days, as well as significant losses in Asian and Emerging Market currencies following the Chinese yuan devaluation."
Expect much more "pain" with or without accompanying trades in the weeks and months to come.
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No pain, no Spain. We must be like Spain.
Everybody - Consume media !! We must lift that sector !
Must is a tough nut to crack.
Our central bankers have the tough nuts that it takes for us to be like Spain. They have infinitely malleable and elastic nuts, located in the cranial cavity. You know....the space where one normally finds the brain.
There is no end to the intellectual plasticity of our central bankers. Their masters banksters must be served.
So where is the money running to?
To the sidelines, where it will be bailed in.
The same place it came from, the ether.
Crush it and own it until you own it all.
This is all part of the plan; slow burn with lots of ups & downs; a see a great short squeeze ahead. When this thing implodes; it will be to steal the pensions, 401k's, and bring small businesses in all sectors down, then TPTB will grab real assets "at the cheap". It explains why the commodities are down, kills the smaller farmers and oil/gas producers, which eventually end up in the hands of the larger players. Monopolies are ever increasing with higher prices, fewer services, and lower quality. It is all coming to a head and we are complacent to watch TV, listen to music and watch porn; it is ultimately a lack of moral values and an assault on future generations.
When you take the "H" out of "hedge" in order to get an "edge" you defeat the original purpose of hedge funds, it seems.