REITs

REITs

"10 Things Learned From 3 Days In Washington D.C."

I have met three types of people here in Washington DC. There are the Trump supporters, who seem to be wildly optimistic. On the other hand, as I look out my window here at the Capital Hilton, I see hundreds if not thousands of protesters walking by wearing little pink hats, and they are decidedly not happy. The third group is much smaller and consists of those who are actually aware of the amount of work that is going to have to be done and who recognize what a daunting task it will be.

RBC: "Commence Pain Trade"

Commence 'pain trade.' Expect there to be significant buy-side performance pain today with regards to the below key “long USD”-linked “US reflation” trades (as quoted above) seeing real capitulatory / unwind flows.

To RBC, This Is The Single Largest Risk To The Market Right Now

The US Dollar is the “grand unifying theory asset” for nearly any and all “profile” global macro or thematic equities trades in the marketplace right now, as it represents investors being long this “new” version of “economic growth.”  As such, performance is significantly tied to the direction in the US Dollar.

Frontrunning: January 10

  • Immigration in focus as U.S. Senate confronts Trump nominees (Reuters)
  • Jeff Sessions to Be Grilled on Race in First of Hearings (WSJ)
  • Libya Ramps Up Oil Production, Threatening OPEC Plans (WSJ)
  • Valeant to sell assets for $2.12 billion to ease debt load (Reuters)
  • Industry Lobbyists Champ at the Bit, Awaiting Business-Friendly Policies (WSJ)
  • Yahoo to be named Altaba, Mayer to leave board after Verizon deal (Reuters)

The Bank of Japan Was The Top Buyer Of Japanese Stocks In 2016

The Bank of Japan is set to become the biggest buyer of exchange-traded funds in 2016 for the second straight year. According to data through Thursday, the value of the BOJ's ETF purchases this year has topped 4.3 trillion yen, up 40% from 2015. As a result, the BOJ "will become the largest buyer of ETFs this year," according to Mizuho Securities.

"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.

"A Watershed Month" - November Sees Greatest "Asset Rotation" Since 2013

The final November fund flow numbers are in, and as BofA's Michael Hartnett puts it, November was a "watershed month" for fund flows with the largest 5-week bond outflows in 3.5 years (Chart 1), largest 3-week precious metals outflows in 3.5 years (Chart 3) and largest 4-week equity inflows in 2 years.