October 2013

What did you learn?

Very quick here – the Senate has just approved a bill to someday approve a bill but, in the meantime, the debt ceiling is raised and the latest bullshit manmade crisis is averted. But we already knew that this would be the outcome. I’ve been teaching you this lesson for years now. If this resolution…

Rocket Fuel

Let me set the scene for you: * There is a Debt Deal in the works that removes the ceiling and related draconian cuts from the discussion til at least February. Out of sight, out of mind. * There is no election this fall. * There is no war with Syria and high level talks…

Here’s what your medical costs will be in retirement

If you think dividend equities are a passing fad and that retirement portfolios are about to shift back into bonds aaaaaaaaaaaaaany minute now, you should consider the new awareness dawning on people about what their healthcare costs will be in the future. Here are some stats that virtually guarantee the need for portfolio growth as…

Chart o’ the Day: Most Over- and Under-Owned Trades

Merrill’s quant strategy group tells us where global fund managers are currently positioned the heaviest and lightest relative to historical norms. It’s shocking how hated emerging market equities and commodities have become. Contrarians take note… BofA Merrill Lynch Fund Manager Survey, Datastream Survey period 4th to 10th October 2013. 183 participants with $500bn AUM responded to…

Subramanian: Multi-Nats over US Consumer Discretionary

Merrill’s chief of quantitative strategy Savita Subramanian points out something that could become important as we get into the real thick of earnings season – consumer discretionaries, many of which rely upon a buoyant US shopper, are starting to disappoint relative to globally-levered companies: All of the consumer-oriented companies that reported last week missed on…

Fitch Threatens Downgrade of US Debt Ratings

It begins –  Fitch Ratings-New York/London-15 October 2013: Fitch Ratings has placed the United States of America’s (U.S.) ‘AAA’ Long-term foreign and local currency Issuer Default Ratings (IDRs) on Rating Watch Negative (RWN). The ratings of all outstanding U.S. sovereign debt securities have also been placed on RWN, as has the U.S. Short-term foreign currency…