Fed Chair Powell’s Dovish stance was predictably on the cards in a backdrop of a slowing global economy, diminishing liquidity condition and a downgrade of corporate credit. It was all in the 2nd part of Fed chair Powell’s speech where he said rates “remain just below the broad range of estimates of the level that would be neutral for the economy”. Fed Chair Powell’s Dovish stance was interpreted by the market that...
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At some point, traders/investors are going be jammin to a new tune, the front-end rate trade. The front-end trade is guestimating when the Fed, the world’s central bank by default eventual blinks, pauses or even walks back its normalization policy Since October’s sell-off in stocks, the bears are finally feasting with many stocks now falling into bear territory. Bear markets provide short sellers with a moveable feast....
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A new era of financial uncertainty could eclipse this coming bear market which is now in sight. With October’s recent rout in stocks now appearing to be more than just a seasonal sell-off, many investors/traders are beginning to realize that the longest stock bull market in living memory could have expired. In anticipation of this new era of financial uncertainty Wall Street titans have already positioned their portfolios to...
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The fintech revolution is likely to be the greatest game changer for banking and financial service industry in a generation. Fintech revolution, a portmanteau of “financial technology” which seeks to improve and automate the delivery of financial services is already having an impact on how millennials, the smartphone generation conducts their daily financial transactions. Notes and coins could soon become obsolete in the fintech...
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The gist of Q3 earnings season is that investor/traders are starting to fret about peak earnings.Despite another quarter of stellar earnings growth, (EPS up 26% Y/Y) investors just aren’t jibbing to the boom in Q3 earnings, instead, they are starting to worry about peak earnings. S&P500 Q3 earning are back to back jolly but it is lackluster revenue growth which is convincing a growing number of investors/traders that peak...
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