The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label hedge funds. Show all posts
Showing posts with label hedge funds. Show all posts

Thursday, December 22, 2016

Year end stock market boom may be tied to Trump planning to lower capital gains rate next year

Leading up to the Nov. 8 Presidential elections, most Wall Street analysts had forecasted dire consequences for the stock markets and economy should Donald Trump win the White House.  But within six hours of the media declaring him the winner, stocks surged in a historic move which one and a half months later, is now standing on the cusp of hitting Dow 20,000.

Yet what is most interesting in the way the markets have gone up nearly parabolic since the election is how little selling there has been, and this despite Janet Yellen raising interest rates and the cost of borrowing last week.  And one thought on this is that traders and investors are holding onto their gains from this rally until early next year because of the potential that Trump will get passed a new tax cut program in 2017 will have huge effects on their capital gains if and when they sell next year rather than taking profits before Dec. 31.

Image result for santa claus rally
Many investors are waiting to take any profits on the Donald Trump rally on the notion that if they wait to sell until January, they will benefit from a capital gains tax cut by the new president on their 2017 returns. 
It's a theory cited by Dan Clifton of Strategas Research Partners in a note to clients Tuesday. Many strategists, including those at Strategas, believe it's the one reason why this rally is showing no signs of slowing down into year end. 
Clifton has a great piece of advice for those waiting to sell in 2017: 
"In 2003, when Congress cut the capital gains tax, the provision was made retroactive to the first committee hearing in March. So be careful just selling on January 1st, depending on when Congress acts, the provision may not be in effect at the exact start of 2017." - CNBC
Many pension and hedge funds often spend a great deal of cash buying into stocks right at the end of the year, leading to the illusion of a 'Santa Claus' rally the media loves to tout.  However, this is mostly done to 'fill out' their books for their clients since they will have be more into stocks than cash when year end reports are sent out to their investors.

Last year the stock markets rose into the end of 2015, and this despite the Fed raising interest rates for the first time in nine years.  But once January 2 rolled around, the markets sold off for the next 17 trading days.

So if recent history is any indication, don't get too excited about this year's rally because there is a high probability that investors and traders are simply waiting until early in 2017 to take their profits on the hope that Donald Trump's expected tax cuts will come to fruition.

Monday, May 16, 2016

Investors jump on gold price pullback as ETF's climb by 25% in past two weeks

While The Daily Economist has never advocated owning paper gold as either an investment or insurance, just the fact that more and more Americans are waking up to the understanding and need for gold in any capacity is a good thing.

And while gold bugs have seen the need for patience over the past month following the cartel's crushing of the gold price once it crossed over $1300 per ounce, this short term pullback has not scared away buyers as interest in the gold ETF's have skyrocketed over the past two weeks, and have increased by 25% in that same time.

Live New York Gold Chart [Kitco Inc.]
The great gold rush of 2016 is gathering pace. Holdings in exchange-traded funds have now surged by a quarter, with investors taking advantage of lower prices over the past two weeks to enlarge stakes on rising concern about central bank policy making worldwide. 
The holdings have increased to 1,822.3 metric tons, the most since December 2013, according to data compiled by Bloomberg, after bottoming at a seven-year low in January. In the past two weeks, as prices lost 1.6 percent, ETFs swelled 63.2 tons, rising every day. 
Gold is the best-performing major metal this year after silver amid rising concern over negative rates in Europe and Japan and whether the Federal Reserve will be able to tighten further. Demand jumped to the second-highest level ever in the first quarter, according to the World Gold Council, and billionaire hedge fund manager Paul Singer has said gold’s rally may just be beginning. Investors are being driven to gold on a structural shift in investment demand, according to Bernard Aw, a strategist at IG Asia Pte. - Bloomberg
In fact, not only has the likes of J.P. Morgan and billionaire hedge fund managers publicly called the new Bull Market for gold, but the moves since January have occurred with little more than 1% of Americans actually owning the precious metal.

Wednesday, January 27, 2016

Hedge funds and big players are buying gold behind the scenes as the metal is the best performing currency of he 21st century

The world is in the process of rejecting fiat currencies.  In China, investors and inhabitants are trying to get out of the Yuan as fast as possible.  And in a most interesting dichotomy, Bitcoin was the best performing currency of 2015.

However, all of these pale in relation to gold, which is by far the best performing currency in the entire 21st century.
Since the beginning of the 21st Century, as people awoke to Y2K that did not end the world, there has been one 'currency' that has outperformed all its peers in terms of preserving wealth and maintaining purchasing power...

Graphic courtesy of Sharelynx

Tuesday, July 23, 2013

Rising home prices coming from flippers not first time buyers

In certain parts of the country, home prices are rising as the country digests trickle down portions of the $Trillion's in money printing coming out of the Fed's QE program.  However, a closer look at who is and who isn't buying houses shows that the majority of home buyers are hedge funds and flippers, and not the average American family or first time home buyer.

There was a time when the US housing market was not "driven" by hedge funds armed with government-subsidized, "REO-to-Rent" loans loading up on distressed properties, by banks refusing to release foreclosed properties into the market (thus creating a market subsidy) or by foreigners eager to park their "tax-evaded" wealth with the Anti Money-Laundering exempt National Association of Realtors. Instead, the main driver of US housing were first-time home buyers, "typically couples in their late 20s or early 30s" who historically have accounted for about 40% of home sales. Alas, last year, and all throughout the New Normal, this number has been about 25% lower, or representing just 30% of all sales - Zerohedge

It is these numbers that investors and all Americans need to be cautious about, and remember the winds of the 2007 housing bubble crash.  When prices reached their peak in the housing cycle, and the stock markets were reaching all-time highs, the end to it all came not only suddenly, but in a crash that nearly brought down the entire Western financial system.

And this was before $20 trillion dollars was printed by the Fed in the last 5 years, and inflated into the economy.

Thursday, November 17, 2011

Hedge Fund manager Kyle Bass lays out the European disaster and shows the ignorance of business media

Hedge Fund Manager Kyle Bass did an interview with the BBC recently, and in the process, showed how ignorant business reporters are regarding economics and the European crisis.  Bass has made sharp and keen analysis going back before the Housing bubble, and is now betting against Germany and Japan as the next to potentially default on their debt.

You will chuckle and wring your hands at how the journalist shill keeps trying to find out how much Kyle Bass's fund made betting agains the system, and even more, how she tries to blame him and others for the current economic crisis.

Its like watching CNBC and the parrots always asking guests for stock tips over and over.

Monday, November 7, 2011

Gold: While hedge funds sell, China buys and thanks naive western nations

After the nice pullback for Gold in September and early October, many investors were wondering if the drops were a signal to the end of the gold bull, or at worst, if deflation was truly on the global financial landscape.

One nation however, gleefully rubbed their hands at their good fortune, and bought and bought, and bought at the lower prices.  China, which normally purchases around 10 tones per month, increased their buying to 140 tons between July and the end of September.

Data from the Hong Kong government showed that China imported a record 56.9 tonnes in September, a sixfold increase from 2010. Monthly gold imports for most of 2010 and this year run at about 10 tonnes, but buying jumped in July, August and September. In the three-month period, China imported from Hong Kong about 140 tonnes, more than the roughly 120 tonnes for the whole 2010. - FT

So, as hedge funds sell off their only profitable asset to cover their equity, bond, and debt losses, China simply says "Thank you", and happily picks up the leavings of the western financial institutions.