It is nasty out there. From Bloomberg: The benchmark index for U.S. stock options reached 80 for the first time in its 18-year history, driven higher by equities extending the biggest slide since 1987 on concern the economy will continue deteriorating. The VIX, as the Chicago Board Options Exchange Volatility Index is known, increased 15 […]
Read more...The bloodbath continues, largely in reaction to the bad economic news reports in the US . From Bloomberg: Asian stocks tumbled, driving Japan’s Nikkei 225 Stock Average down as much as 10 percent, as concern deepened that the global economy is headed for a recession after U.S. retail sales fell…. “Investors are still pricing in […]
Read more...Boy, that was short lived. The massive EU and US rescue efforts to pump equity into banks, the TARP, the increase in the Term Auction Facility (from $150 billion to $900 billion), the Fed offering unlimited dollar swaps to foreign central banks, and those monetary authorities themselves engaging in liquidity operations, appears to have come […]
Read more...Hedge fund margin calls appear to be playing a role, perhaps a substantial one, in the precipitous fall in stock prices. One hedge fund manager told us yesterday that a West Coast hedge fund was supposed to have dumped a lot of risky fixed income positions late in the day yesterday. That affected the stock […]
Read more...From Bloomberg: U.S. stock exchanges may seek to impose a temporary ban on short sales for individual stocks that plunge as regulators seek to rein in short-selling. The New York Stock Exchange and Nasdaq Stock Market may file their proposal with the Securities and Exchange Commission as soon as today, said three people who have […]
Read more...It was bad enough that the Nikkei traded down over 9% today and most of the rest of Asia fell 6% to 8%. But the opening of European markets is a dramatic vertical trajectory down: DJ Stoxx 50 down 8.3%, FTSE down over 10% in five minutes, now down a comparatively modest 9.23%Dax 30 down […]
Read more...The Nikkei went into free fall after the open, down over 900 points, and as of this writing has staged a minor recovery to a mere 780 points down and is now down 880 from yesterday’s close. Singapore is down 7%, Australia 6%. The yen is at 99 to the dollar, and gold is at […]
Read more...On the one hand, I was mystified that the stock market was up in the morning session given that the money market seize up was not at all improved and several key measures had worsened overnight. I was wiling to accept the view that we might have an oversold bounce and saw several bloggers indicate […]
Read more...Oh boy, will give you details when they show up in the media. Here is the screenshot courtesy reader Rob (click to enlarge): Update 2:00AM. From Bloomberg: Indonesia’s stock exchange halted share-market trading for the first time in eight years after a 10 percent plunge in the benchmark index. Trading will remain suspended until further […]
Read more...Mr. Market is in a very bad mood. From Bloomberg: Asian stocks fell, sending Hong Kong’s Hang Seng Index below 16,000 for the first time in two years, on concern the credit crisis will topple more banks and slowing growth will cut demand for the region’s exports… “Investors are liquidating their stock positions because they […]
Read more...There was a remote chance of a rebound rally (and I don’t mean anything jazzy) but the news that Bank of America, heretofore regarded as a sound institution (how with its credit card exposures and acquisition of Countrywide is beyond me) will cut its dividend by 50% and raise $10 billion to bolster its balance […]
Read more...So much for the idea that the bailout bill would produce a relief rally. Overseas equity markets are taking a beating. No word yet on how the credit markets are faring. Investors are finally waking up to the notion that it isn’t just the US financial system that is in trouble, but that pretty much […]
Read more...We have a certain fondness for Marc Faber: he knows financial history, he is refreshingly direct, not attached to conventional thinking, and has a record of generally good investment calls (and admits to his mistakes). Reader Dean provided us his latest newsletter, plus a story covering recent interviews (no, Dean is not his PR agent, […]
Read more...Markets continue to be roiled by the upset of the effort to pass the touted Paulson bailout bill. As of this writing, the FTSE and Dj Stoxx 50 are up slightly, but money markets took a beating, the reaction worsened by end-of-quarter factors. From Bloomberg: The cost of borrowing in dollars overnight surged the most […]
Read more...Conventional wisdom has been that Treasuries have been the yet another bubble as cash exited equities and other risky investments, first feeding a commodities spike, then seeking a better home in Treasuries. But Merrill’s David Rosenberg, who was in a decided minority in seeing deflation as the likely outcome for the US (he has for […]
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