views on markets, equities, bonds, derivatives, finance, investing, the economy

Detroit Recovery Plan Threatens Muni-Market

Detroit Recovery Plan Threatens Muni-Market Underpinnings - Bloomberg: "Investors demand 0.71 percentage point more in yield than top-rated municipal bonds to own general-obligation securities issued by Michigan and its localities, the third-highest spread among 19 states tracked by Bloomberg Fair Value indexes. Only issuers in Illinois, the lowest-rated U.S. state, and Pennsylvania face higher borrowing costs."

The New $100 Bill: Here's What It Looks Like (Video)

The New $100 Bill: Here's What It Looks Like: Video - Bloomberg: "June 12 (Bloomberg) -- Bloomberg's Scarlet Fu gives us a look at the design for the new $100 bill which is set to go into circulation in October. She speaks on Bloomberg Television's "Bloomberg Surveillance.""

China braces for capital flight and debt stress as Fed tightens

China braces for capital flight and debt stress as Fed tightens - Telegraph: "China appears increasingly worried that monetary tightening by the US Federal Reserve could trigger capital flight from the People’s Republic and set off a Chinese corporate debt crisis."

China Signals No Relief on Cash Squeeze - "A commentary published Sunday by the official Xinhua news agency said there was no shortage of funds in China's financial system. Rather, it said, a combination of speculation and nonbank forms of lending often called shadow finance were contributing to the surge in short-term lending rates."

Why Investors Are Leaving Gold for Equities (Video)

Why Are Investors Leaving Gold for Equities?: Video - Bloomberg: "(Bloomberg) -- Bloomberg Economics Editor Michael McKee and Alix Steel examine the rapid decline in the gold market and why investors are turning from the metal to equities. They speak on Bloomberg Television's "In The Loop." June 17"

Why Wall Street Likes Slow Job Growth (video)

Why Wall Street Likes Slow Job Growth: "Job growth in May kept up with the year’s monthly average, with 175,000 new jobs added. Meanwhile, the unemployment rate increased slightly to 7.6 percent."

Faber says S&P 500 Could Fall 20% to 30% (Video)

Faber: S&P 500 Could Fall 20% to 30%: Video - Bloomberg: "June 21 (Bloomberg) -- Gloom Boom & Doom Report Editor Marc Faber discusses the global markets sell-off and his investment strategy with Tom Keene on Bloomberg Television's "Street Smart." (Source: Bloomberg)"

Stanley Fischer Says US Housing May Be Due for Decline (Video)

Fischer Says U.S. Housing May Be Due for Decline: Video - Bloomberg: "June 13 (Bloomberg) -- Bank of Israel Governor Stanley Fischer discusses the U.S. economy, Federal Reserve and Bank of Japan monetary policy, and the shekel. He talks with Francine Lacqua and Elliott Gotkine on Bloomberg Television's "The Pulse." (Source: Bloomberg)"

China braces for capital flight and debt stress

China braces for capital flight and debt stress as Fed tightens - Telegraph: " . . . Premier Li Keqiang has until now vowed to press ahead with loan curbs, insisting that the economy is strong enough to withstand the strain. The editorial is a clear sign that the Communist Party is preparing a volte-face, discovering that it is harder to manage a calibrated soft-landing than originally assumed. Citigroup warned in a new report that surging SHIBOR rates will cascade through the banks and damage growth later this year, with knock-on effects for commodity prices and emerging markets worldwide."

Zell: Chinese Real Estate Not Worth the Effort (Video)

Zell: Chinese Real Estate Not Worth the Effort: Video - Bloomberg: "June 12 (Bloomberg) -- Sam Zell, Chairman at Equity Group Investments, talks with Betty Liu about real estate investing in China. He speaks on Bloomberg Television's "In The Loop.""

Meredith Whitney's States for Growth (video)

Meredith Whitney: Look to These States for Growth: Video - Bloomberg: "June 6 (Bloomberg) -- In "This Matters Now," Meredith Whitney, CEO at Meredith Whitney Advisory Group, discusses migration within the United States as residents search for prosperity. She speaks on Bloomberg Television's "Bloomberg Surveillance.""

Nikkei Enters Bear Market (video)

Nikkei Enters Bear Market - "The Nikkei Stock Average tumbled into bear market territory Thursday. The WSJ’s Jake Lee tells Deborah Kan why Japanese Prime Minister Shinzo Abe’s economic program is facing fresh doubts"

Wall Street Career Filled With Sex, Drugs (video)

Wall St. Career Filled With Sex, Drugs: Turney Duff: Video - Bloomberg: "Former Galleon Group Trader Author Turney Duff discusses his book "The Buy Side: A Wall Street Trader's Tale of Spectacular Excess" with Deirdre Bolton on Bloomberg Television's "Money Moves." (Source: Bloomberg)"

Investors Beginning to Question Abenomics (video)

Investors Beginning to Question Abenomics: Konyn: Video - Bloomberg: "June 7 (Bloomberg) -- Cathay Conning Asset Management CEO Mark Konyn discusses Bank of Japan monetary policy and the global economy with Susan Li on Bloomberg Television's "Asia Edge." (Source: Bloomberg)"

Sell in May ... err, June and go away?

Sell in May ... I mean, June and go away? | The Courier-Journal | "June happens to be the worst-performing month for the Dow the past 20 years, falling 0.8%, on average, and finishing the month higher only 40% of the time, according to Bespoke Investment Group. It also is the second-worst month going back 50 years. In short, June is more of a dud than May. May gets its reputation as a good time to sell because it marks the start of what historically has been the worst six-month stretch (May-October) for stocks. So just because stocks didn't stick to the script and dip in May, doesn't mean June, or the next five months, are going to be profitable for stock investors, history suggests. "If there's a month when the bears have a chance of winning this year, it's probably (June)," notes Paul Hickey, co-founder or Bespoke Investment Group."

Bloomberg Monitoring

Hunch About Bloomberg Brought Rivals Together - " . . . Goldman’s response began when a press officer in Hong Kong received a call from a Bloomberg reporter about the whereabouts of a partner who the reporter noted had not logged into his terminal in a few weeks. The Goldman employee felt the call crossed the line, and she immediately mentioned it to her boss in Hong Kong, who in turn  raised it with Mr. Siewert in New York. His first move was to find out whether Bloomberg had guidelines prohibiting reporters from using terminals to further their reporting. Mr. Siewert is probably best known for his years working for President Clinton, including as his press secretary. Mr. Siewert called a reporter at Bloomberg who covers Goldman. He was directed to an editor, who assured him that Bloomberg had a policy aimed at preventing exactly the sort of behavior Mr. Siewert was concerned about. This response surprised executives at Goldman because the reporter who called the Hong Kong office had admitted monitoring an executive’s whereabouts through the terminal. Mr. Siewert then called more than half a dozen former Bloomberg reporters, most of whom now work at The Wall Street Journal. Most of those acknowledged using the terminal to further their reporting, or said they knew people who had done so. . . ."

Billionaire Frost ups investment in Ladenburg Thalmann

Billionaire Frost ups investment in Ladenburg Thalmann by $20M - South Florida Business Journal: "Billionaire entrepreneur Dr. Phillip Frost increased his investment in Ladenburg Thalmann Financial Services by $20 million as part of the company’s $115 million stock offering. The Miami-based investment banking, asset management and brokerage firm (AMEX: LTS) closed its offering of 4.6 million shares of Series A preferred stock at $25 a share on May 24 . . ."

Seniors, Beware Selling Your Pension

Seniors Warned, Think Twice Before Selling Pension: "The practice of retirees selling their pensions for a lump sum has drawn U.S. regulators' attention, with two government watchdogs this month warning consumers about some of the firms that engage in the practice. "We're very concerned about the long-term detrimental effects of these pension sales," said Lori Schock, director of investor education at the Securities and Exchange Commission. "While there are some legitimate firms, there are plenty that are not, and it's a challenge for us as regulators to keep track of them," Schock said. "Some of these are scams.". . ." (read more link above)

Why Over Pay for Investment Help?

"Passive portfolios that held all the stocks in a broad-based market index have substantially outperformed the average active manager since 1980. Therefore, the increase in fees likely represents a deadweight loss for investors." (source infra)

Burton G. Malkiel: You're Paying Too Much for Investment Help - "Outperforming the consensus of hundreds of thousands of professionals at the world's major financial institutions is next to impossible. It has been for decades. Over long periods, about two-thirds of active managers are outperformed by the benchmark indexes. The one-third that may outperform the passive index in one period are generally not the same as in the next period. But investors can benefit from low-cost index funds and their exchange-traded cousins. The lesson for investors is very clear: You can't control what markets can do, but you can control the costs you pay. The less you pay to the purveyors of investment services, the more there will be for you. The quintessential low-cost investment vehicles are index funds, which should comprise the core of every investment portfolio. The high fees charged for active management cannot be justified."

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