REITs

REITs

Previewing The BOJ's Decision: What Wall Street Expects Will Happen

As BBG's Vincent Cingarella says, nothing short of a Herculean effort is likely to weaken the Yen over the long-term amid speculation about what the BOJ and government stimulus will look like. Over the short-term it is a different story. Here is what Wall Street thinks The Bank of Japan will announce today.

"This One Is Very Surprising" - US Luxury Rental Market Turmoiling As EQR Cuts Guidance For 3rd Time

Those who still assume that US high-paying jobs are doing just fine, the following disclosure from EQR will be disturbing: San Francisco and New York, which account for half of Equity Residential’s projected revenue growth, are seeing a slowdown in hiring for jobs that pay enough to enable renters to afford the new luxury-apartment supply coming in those cities." As Mizuho said "this one is very surprising to us."

Investors Plow Record Cash Into Emerging Markets, As Europe Suffers Record Outflows

Whether it is due to the recent speculation that Japan may usher in helicopter money, or ongoing concerns about what Brexit may do to the future of European asset returns, there has been a dramatic shift in fund allocation and as Bank of America reports, investors are rushing to vote with their wallets. They have done so in the latest week by continuing to plow money into EM stocks, allocating a record amount of cash to Emerging Markets, while yanking a similarly record amount of cash from Europe.

Mattress Money & Need-For-Yield: "We Saw This In 2007"

“Cash On The Sidelines.” is the age old excuse why the current “bull market” rally is set to continue into the indefinite future. The ongoing belief is that at any moment investors are suddenly going to empty bank accounts and pour it into the markets. However, the reality is if they haven’t done it by now after 3-consecutive rounds of Q.E. in the U.S., a 200% advance in the markets, and now global Q.E., exactly what will that catalyst be? However, Clifford Asness summed up the problem with this myth the best and is worth repeating...

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.

Something Huge Is Coming From Japan

Pretend, for a minute, that your country responds to the bursting of a credit bubble by borrowing unprecedented amounts of money and using it to prop up banks and construction companies. This doesn’t work, so you create record amounts of new money and push interest rates into negative territory in an attempt to devalue your currency. But this - amazingly - doesn’t work either. Your currency soars and the inflation you’d hoped to generate never materializes. Now what? Is there even anything left to try, or is it simply time to stand back and let the current system melt down?

Brits Lead Revolt Against Age Of Inequality, BofAML Favors "Gold, Vol, & Cash Positions"

Brexit is the biggest electorate riposte yet to The Age Of Inequality created by policymakers to save (some) of the world, and as BofAML's Michael Hartnett warns, investors must anticipate a shift to an increasingly populist policy response. The backdrop of Quantitative Failure nonetheless means a renewed bull market in risk assets is impossible unless fiscal policy can quickly arrest the downside in GDP & EPS forecasts.

So Who Is Buying? Selling Continues With $2.6 Billion In Equity Outflows, Stocks Sold In 10 Of Past 12 Weeks

The fund flow paradox continues: US stocks trade just shy of all time highs as global outflows from equity funds continue with another $2.6 billion yanked in the past week; this represents 10 weekly outflows in the past 12 weeks. More confusing is that just in the US, $2 billion was withdrawn leading to outflows in 5 of the past 6 weeks. So who is buying? That is the implied question in the last fund flow note from BofA's Michael Hartnett...