LETFs (leveraged exchange traded funds) may contribute to stock volatility in the same way that portfolio insurance contributed to the 1987 stock market crash, according to recent research done by Tugkan Tuzun at the U.S. Federal Reserve. He argues that the same positive feedback loops, especially during the final hour of trading, exacerbate high volatility, though it may not have a significant effect on the market during times of relative stability.
Xu Zhong, head of the People’s Bank of China’s research bureau, is in an unusual position. In a nation known for government intervention in free market forces, he recognizes... Read More
Tiger cub Robert Citrone's Discovery Capital initiated a new short position in Banco Sabadell SA (MCE:SAB) (PINK:BNDSY). Boston based Wellington Management Company also opened a short in Banco Sabadell. Both funds are... Read More
Thailand has just had its fifth straight month of deflation with CPI falling to -1.3% year-on-year, and Societe Generale permabear Albert Edwards sees evidence of a broader Asian malaise... Read More
Quantitative easing is here to stay. In the U.S., we are on the threshold of another, the third, tranche of monetary easing in the face of a reluctant economy that... Read More
After taking a beating in the US court system, Argentina is moving its sovereign debt legal battle to a potentially more sympathetic international judicial tribunal. Latin America's lawsuit against US... Read More
Days before gold and silver underwent massive declines, Hedge Funds 'Tiger cub' Robert Citrone's Discovery Capital disclosed a 0.8 percent short in Anglo American plc (LON:AAL) (OTCMKTS:AAUKY). Anglo American has major... Read More
The following interview was first published in the winter 2015 issue of the Graham & Doddsville investment newsletter. Andrew Wellington co-founded Lyrical Asset Management (LAM), a New York-based boutique investment... Read More
The world's largest publicly traded quantitative firm says the trend towards quant investment methods will persist Read More
Active asset management has come under attack in recent years, as individual investors have started to realize that for all the focus on over- or under-performing the market, high... Read More
The Royal Bank of Scotland will move from a restructuring story centered on shedding non-strategic businesses and unwinding legacy assets to a core earnings story over the next 18... Read More
