How you talk about markets alters investor expectations

Tom McKay

Michael Morris, a professor from Columbia Business School, wrote a paper titled "Metaphors and the market: Consequences and preconditions of agent and object metaphors in stock market commentary.” In the paper, Morris investigates if the way commentators speak about markets can directly influence investors expectations. The paper splits market commentary... Show More

Jim O'Neill, The former Chairman of Goldman Sachs Asset Management talks about the Swiss National Bank's decision to abandon the swiss franc's cap against the...

Tom McKay

Jim O'Neill, The former Chairman of Goldman Sachs Asset Management talks about the Swiss National Bank's decision to abandon the swiss franc's cap against the euro and its market implications. Did they get the inside word on Europe? http://www.bloomberg.com/video/jim-o-neill-on-snb-franc-move-euro-area-outlook-markets-8Z4ZliP_Tc~El33YXaQyNw.html Show More

Carl Icahn's interview with Bloomberg

Tom McKay

Carl Icahn's interview with Bloomberg. When asked about the biggest risk to markets at the moment, Icahn says: There's still risk in the financial markets, even though the economy looks pretty good. The one area I think is getting to be a bubble is the high-yield market. These bonds are... Show More

Livewire one to watch on the 50 Fintech Innovators list

Tom McKay

Livewire one to watch on the 50 Fintech Innovators list. KPMG, AWI and the FSC have released their 50 Best Fintech Innovators report for 2014. The report ranks companies that are driving disruption within the international financial services industry and features big global names such as Square, Kickstarter and Xero.... Show More

OPEC split playing out behind closed doors

Tom McKay

OPEC split playing out behind closed doors. Bloomberg reports that up to eight countries involved in the recent OPEC meeting wanted a reduction. However, the push for a cut, which would have required unanimous backing, was shot down, triggering the immediate price collapse. The disagreement cements the formation of two... Show More

London property hits the ceiling

Tom McKay

London property hits the ceiling. London's soaring home prices, which peaked this year, have pushed buyers to the sidelines. Lending restrictions and sluggish wage growth have also curbed demand, now at a more than six-year low, as buyers wait for values to decline further. It costs about 25 percent more... Show More

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How to deal with volatility (or how not to deal with it)

Tom McKay

How to deal with volatility (or how not to deal with it). The good people at Abnormal Returns say: Every (trading and investment) strategy will require some tweaking over time, but investors almost always get into trouble when they adjust their plans during times of market stress. It is always... Show More

From the New York Times: “From a Western market perspective, what China is trying to do cuts against everything we know that will work. But they don’t see this the way we do. People in the Western democracies tolerate volatility. But the failure of equity markets in China could translate into social unrest, which is a horrifying prospect for the Chinese leadership.” http://www.nytimes.com/2015/07/10/business/international/why-chinas-stock-market-bailout-just-might-work.html

On Rule #1 of the Chinese stockmarket -

JP Morgan agrees that’s there’s light at the end of the tunnel for Europe saying “There are a number of key catalysts in place for Europe in 2015” Watch the 1 min video: http://goo.gl/YMceta

On Roubini: There are signs of life in the eurozone -

HSBC's economists Paul Bloxham and Adam Richardson agree... the bar for RBA intervention as very high and unlikely to be met anytime soon. Just speaking about the possibility of intervention was enough to see the Australian dollar sell-off. While the RBA would clearly have welcomed this move, time will tell whether this weakness persists. With much of the weight of the Governor's commentary and the RBA's own modelling indicating that the Australian dollar is not far from fair value and with intervention seen as costly, we still think there is a very high bar set before the RBA would actually consider intervening.

On Glenn Stevens may have opened the door on currency intervention, yet many Analysts think it's unlikely that he will intervene -

It looks like financials may extend those numbers further this year...

On Sell in May -

Thanks for the full update Jay. For anyone that's interested, here's the full FOMC release: http://federalreserve.gov/newsevents/press/monetary/20131218a.htm

On The moment of truth has arrived.. -

Significant turn around for them since May 2013 when they forecasted gold to bounce back to $1600. http://www.marketwatch.com/story/bnp-paribas-sees-gold-above-1600-in-6-months-2013-05-10

On BNP Paribas cut its 2014 gold forecast to $1095 -

China has just lifted the ban on Facebook but only for people in Shanghai. Will be interesting to see the takeup. I'm guessing due to the exclusivity and desire for Chinese to understand what's going on in the rest of the world it will be good. http://www.dailymail.co.uk/sciencetech/article-2431861/China-lifts-ban-Facebook--people-living-working-small-area-Shanghai.html

On Facebook is close to being dethroned as the world's number one social network (unfortunately not by Livewire) -

Here's the link if you are a member of FT: http://ftalphaville.ft.com/2013/10/30/1681512/bear-hunting/

On Where did the bears go -