Bank of America

Bank of America

Markets Award Trump Nobel Prize In Economics

It took only nine days in office for President Obama to be nominated for the Nobel Peace Prize. Likewise, the markets seem to have prematurely greeted Trumponomics as an outstanding success. There’s just one thing: Trump hasn’t done anything yet. We’re still weeks away from his inauguration, and details of his economic plans remain scarce.

"Trump Trade" Leads To Ninth Biggest Weekly Inflow To Equities, More Bad News For Active Managers

The "Trump Trade" continued with global equity funds receiving $21 billion in inflows in the past week according to Bank of America, as investors rushed into reflation assets, while money flowed out of bonds for seventh week in a row. For one more week news for the "active managed" community was negative: of the $20.7 billion in equity inflows, $31 billion was in the form of ETFs, which meant another $10 billion in outflows from mutual funds and other active vehicles.

Banks In Drag - The Russell 2000 Exposed

The recent appreciation in financials is apparently a response to the new administration’s planned policies that are generally viewed as beneficial for the financial sector.  Given the regulatory oppression of the past eight years, this may very well be a sound reason to own bank stocks. However, the R2K index is trading at grossly elevated levels. Owning the index for anything other than pure speculative trading is ridiculous. Owning the index for its bank exposure is insane.

Satellite Imagery Reveals Sharp Retail Spending Slowdown After The Election

Defying consensus, JPM found retail spending activity trends "worsened post the election contrary to stock market moves and color from some management teams" when analyzing satellite image car counts at parking lots. It finds that this is "interesting as it is counter to prevailing thought."

Frontrunning: December 6

  • For Europe’s Unity, 2017 Will Be a Year of Reckoning (WSJ)
  • Oil dips as OPEC, Russian output rises ahead of production cut (Reuters)
  • The Pessimist's Guide to 2017 (BBG)
  • Donald Trump’s Message Sparks Anger in China (WSJ)
  • Brazil’s Reform Plan in Disarray After Senate Chief Removed (BBG)

A Look At This Week's "Other" Big Event

With the Italian referendum now in the rearview mirror, the market's attention focuses on this Thursday's second most important event, the ECB meeting on Thursday. Here are the key questions the market will want answered.

"Meanwhile In Europe..." - The Big Day Arrives

Less than a month after the "shocking" election of Donald Trump as US president, the world prepares for another day of political shockwaves, this time out of Europe, when on Sunday all eyes will be on Italy and, to a slightly lesser extent, Austria.