Investors anticipating the first Friday of the month for the release of nonfarm payrolls data were thunderstruck when a week-long string of high performing data ended with a thud. The U.S. Labor Department reported that a mere 142,000 jobs were added to the labor force, close to 100,000 jobs less than expected by many economists.
The disappointing jobs data much like the impossibly optimistic report of a 4.2 percent rise in second quarter U.S. gross domestic product late last month are both indications of an economy that has yet to fully iron out an even recovery.
Bond market investors with millions to spare are not apt to buy debt without first examining the fine print, or at least have a team of financial experts and lawyers do it for them.
Yet many investors fail to do the same due diligence when looking to shelter money, invest it for future generations or just plain spend it, when it comes to purchasing artwork, says one art preservationist.
Oil traders who bet on rising prices were hit with a double whammy on Tuesday in the way of announcements from the top two energy data agencies. The still-nascent U.S. shale energy revolution is upending eons-old geopolitical events and it still seems to be in the early days.
Global energy watchdog the International Energy Agency revised lower its outlook for oil demand this year back to 2012 levels as the U.S. Energy Information Administration (EIA) said July U.S. oil production rose to its highest in more than a quarter century.
The long, lazy days of summer haven’t stopped economic recovery from plugging along in the U.S. Unlike winter, which was mostly blamed for a negative gross domestic product reading at the beginning of the year, some June U.S. economic data is coming out strong.
On Tuesday, the industry group the Conference Board, said its Consumer Confidence Index for June rose to its highest level since October 2007. Economists pegged this on an improving labor market, which is not without its lumps.
Activist investing has been among the best performing hedge fund strategies this year. These investors buy a company’s stock and may agitate its management for a change. They may sell the stock short, expecting its share price to fall before they can replace management or board members to facilitate any change.
Many investors feel this is counterintuitive to being an equity holder in a company. Some are plainly critical of the practice.
The largest Wall Street investment banks reported good earnings this week, many beating analysts’ expectations, but the devil remains in the details.
Banks are in the middle of implementing global regulations designed to create a safer framework under which they operate and avoid an encore of 2008. Still, these financial institutions are not as forthcoming as they should be in disclosing key elements that would help measure their resilience, Mayra Rodríguez Valladares, managing principal of MRV Associates and a bank regulation expert told the Reuters Global Markets Forum during a LiveChat this week.
Twitchy investors who fear the S&P 500 stock index will correct its meteoric rise after posting historic highs on Tuesday have yet to show up in the widely-watched index that measures investors’ confidence in markets.
The Chicago Board Options Exchange (CBOE) volatility index or the VIX, known as the “fear gauge” that measures the short-term volatility of S&P 500 stock index options, has steadied around 10 percent at multi-year lows.
Fund managers picked stocks and gave tips on how to tactically invest around central bank policies; a former government regulator proposed his outlook on potential next steps to rein in high frequency trading and others talked winning trades and how to sell a hedge fund in this climate at the HedgeWorld Midwest Conference in Chicago this week.
Investors should remain nimble and invest “tactically” in preparation for when central banks eventually pull the plug on stimulus programs and interest rates rise, said Sharon Snow, chief executive of Metropolitan Capital Strategies which oversees $100 million in investments for families. “We are waiting for the Treasury trade to materialize – short Treasuries when yields go up,” she said during a panel discussion.
Bitcoin – an illusion, a fad, a passing hobby. Not so much. This week, travel web site Expedia.com said it would begin accepting the virtual currency as payment for hotel accommodations and the owner of a Canadian gold mine offered its sale for $2 million in Bitcoin.
Replacing or even comparing gold with a so-called crypto-currency is still something of a reach, but more and more investors are turning their attention toward how Bitcoin can be used for monetary transactions and how they can profit from it.
NEW YORK (Reuters) – Billionaire philanthropist and former heavyweight natural gas trader John Arnold became aware of the ailing U.S. public pension system years ago, before unprecedented municipal bankruptcies highlighted the gravity of the situation.
Houston-based Arnold, 40, retired from hedge fund management in 2012 after trading in energy for more than a decade at Enron Corp and then at his own fund, Centaurus Energy.