Risk Management

Deutsche Bank Tumbles After Abysmal Trading Results

Deutsche Bank shares tumbled 4% on Thursday after the bank reported a plunge in overall company revenue which slumped to the lowest in three and a half years, as Investment Banking revenue dropped 16%, while FICC tumbled a whopping 12% Y/Y and 30% Q/Q, with CEO John Cryan taking a page out of the Goldman playbook and blaming "muted client activity."

There Is Only One Empire: Finance

As for hegemony and empire - be careful what you wish for. Life outside the financial bubble is much more contingent and risky than life inside the bubbl - until it pops.

Breaking Down The Bull Market Thesis

"Considering that forward estimates are generally overstated by 33% on average, the risk is high of disappointment... The risk for investors is “willful blindness” that builds when complacency reaches extremes. It is worth remembering that the bullish mantra we hear today is much the same as it was in both 1999 and 2007."

What To Do With Your Cash?

Is it folly to hold cash right now? Or brilliant? ..."The problem with bubbles is that they force one to decide whether to look like an idiot before the peak, or an idiot after the peak. "

"The Swarm Effect": Every Trader Today Has Just Two Choices

"...one faces a choice between two scenarios: 1) A small probability of losing all of your money all at once at an undisclosed time in the future, or 2) A high probability of gradually losing small amounts over an indefinitely long period of time, keeping in mind that persistent small losses over an indefinite time period could lead to large cumulative losses."

Goldman Wins Patent For Its Own Cryptocoin Technology

Goldman Sachs has clinched an important victory in its race to transition from a stodgy investment bank into a fintech powerhouse: It has been awarded a patent for its proposed "SETLcoin" cryptocurrency settlement system.

BNP Fined $246MM After Its Traders Were Found To Still Use Chat Rooms To Rig FX Trading

Two months after the Fed fined Deutsche Bank a paltry $157 million for manipulating currency markets after the German bank's traders were found to be using "chat rooms" to rig FX trading, we learn that there was mor gambling going on here and on Monday the Fed announced that it will fine French BNP Paribas $246 million "for the firm's unsafe and unsound practices in the foreign exchange (FX) markets."

Sornette's Supercomputer Is Betting On A Market Crash

“One can observe the continuation of a trend in the growth of positive bubbles in the fixed income asset class for the second month. The fraction of stocks diagnosed in a positive bubble state increased this month to exceed 36% compared with 32% last month. Mixed bubble signals still occur only in few commodity indices. We also observe renewed bubble activity in currency pairs.”

7 Myths Of Investing

"There are no sidelines. Those saying this seem to envision a seller of stocks moving her money to cash and awaiting a chance to return. But they always ignore that this seller sold to somebody, who presumably moved a precisely equal amount of cash off the sidelines."