Skip to main content

Tuesday: Back in the saddle

It's back to business here in the US, as we finish this first stock trading session of the week following our Labor Day holiday.

Let's survey the financial scene and see what's shaking as we head into a new trading week and the start of the fall season. Here are a few recent stories and market updates I've been keeping up with:

1. Investment Postcards offers up their latest global stock market performance round-up.

2. Bear Mountain Bull provides us with a Tuesday market wrap-up, and some thoughts on energy prices and the direction of some major market indices.

3. BusinessWeek anticipates the post-Labor Day market activity and highlights some important trends that are currently foremost in market participants' minds.

4. John Mauldin shared some thoughts on the credit markets and widening credit spreads this past weekend in a piece entitled, "Who Holds the Old Maid?".

5. Red-Hot Resources offered up some charts of oil, gold, and the US dollar, along with some commentary on the impacts of Hurricane Gustav (less than feared) and the effects of the recently strong dollar on commodity prices.

6. FT: Asian issuers show preference for renminbi.

"The renminbi has for the first time supplanted the dollar as emerging Asia’s most popular currency for fixed income corporate funding, reflecting a surge in local currency issues by Chinese companies."

Will the recent strength in the dollar undermine this trend, or is this a sign of things to come in Asia's fixed-income markets?

7. Hedge funds are caught in a tight spot. Wall Street Journal reports that investor money flows into hedge funds have slowed as the industry has its worst performance year since 1990.

As the WSJ graphic shows, a few of the firms' largest funds are doing well, and some firms who run multiple funds are seeing positive performance YTD in individual funds. Still, overcoming past losses and "high-water mark" levels for performance-based profits are now a problem for many hedgies.

8. Bloomberg: Citadel, SAC Capital get pick of casualties as carnage worsens. The larger hedge funds that are well capitalized and doing okay have their pick of employees defecting from other firms.

See anything important that we might have missed? Feel free to add it to our comments section, along with your thoughts. Thanks!

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance, I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart.

So here's what a real stock market bubble looks like. 

Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ$BCORpic.twitter.com/xjsMk433H7
— David Shvartsman (@FinanceTrends) February 24, 2015
For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan, turned to rubble.

As detailed in our post, "Round trip stocks: Momentum booms and busts", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months. 

In a pattern common to many parabolic shooting stars, the stock soon peaked and began a…

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL! 

Please bookmark our new web address at Financetrendsletter.com

Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner.  



Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead!

As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter. You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter). 

Stay up to date with our real-time insights and updates on Twitter.

Moneyball: How the Red Sox Win Championships

Welcome, readers. To get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter.

The Boston Red Sox won their fourth World Series titleof the 21st century this week.

Having won their first Series in 86 years back in 2004, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it?

Quick background: in late 2002, team owner and hedge fund manager,John W. Henry(with his partners)bought the Boston Red Sox and its historic Fenway Park for a reported sum of $695 million.

Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship.

This brings us to one of my favorite scenes from the 2011 film, Moneyball, in which John W. Henry (played by Arliss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pitt) over to Boston with an excellent job off…