"There is no doubt that the market can grind higher to more dizzying valuations. However, there is also strong historical evidence that this market will normalize to average valuations. In the wisdom of Bernard Baruch, there are times when you “make your money” by not losing it. Perhaps more importantly, you preserve the ability to buy when better opportunities present themselves. "
"FX traders in the spot market at Deutsche Bank routinely communicated with FX traders at other financial institutions through chatrooms on electronic messaging platforms accessible by traders at multiple institutions."
“If we can’t even trust a big national bank, what other financial institutions can we trust?” Liu Min, who bought 12 million yuan worth of WMPs from Minsheng Bank, said as he learned that his money was gone.
One week after "unnamed sources" reported that Saudi Arabia had backed the proposed 6 month extension to oil production cuts, this morning oil is lower after the world's biggest oil producer appeared to backtrack on its trial balloon from last week, when Saudi Arabia’s energy minister said it is "too early" to decide whether OPEC will extend its crude-production-cutting agreement for the rest of the year.
The summit between Donald Trump and Xi Jinping is arguably the most-anticipated meeting of the U.S. leader’s presidency so far. How will financial markets react to the tete-a-tete in Florida? Several trades and analysts share their views.
"...on a quarterly basis, the market is currently more overbought than at just about any other point in history... Combined with record levels of margin debt, the current conditions HAVE NEVER lasted indefinitely. "
Economic cycles do not last indefinitely. While fiscal and monetary policies can extend cycles by “pulling forward” future consumption, such actions create an eventual “void” that cannot be filled. In fact, there is mounting evidence the “event horizon” may have been reached as seen through the lens of auto sales.
Do not fear: there will be a “Trump Trade 2.0” at some point this year. Either valuations will retreat to the point where they reflect the reality of a legislatively-driven set of catalysts, or Washington will (in its own time) deliver on a pro-growth agenda as the market treads water. Just remember: Washington doesn’t work in New York minutes.
"In the movie he was portrayed as the moral compass. After hearing his praise for the awesome job Paulson did by saving the criminal Wall Street banks with taxpayer money, I think the justice and righteousness stuff is overdone. Earlier in his talk he said banks existed to “fuck you” – his exact words. Then later he says we had to save them or the world would have ended."
Further woes for the LBMA Silver Price benchmark provide an opportunity to launch a real silver price discovery auction in its place. However, the chances of this happening with the LBMA bullion banks still in charge are essentially nil.
"You can always buy it back" is one of the '10 Trading Commandments'. It is meant to encourage good risk management – cutting your losses before they kill you. But it is easier said then done and thanks to some useful academic work now we know why.
According to JPM's Investor Day presentation, not only did the bank not have a single losing day in all of 2016, but JPM's trading desk also had zero daily losses in 2014 and 2013. It did, however, lose money on two days in 2015.