Month: November 2017

Are Trend Following and Gold a Perfect Match?

  • Gold
  • Charlie Bilello

Market participants are often heard saying things like “you can’t trade Gold on fundamentals.” With no cash flows to discount, Gold is a different animal than stocks or bonds. It is said to swing higher and lower due to changes in investor sentiment alone. Many a trader will advise you to simply follow the trend: […]

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The Uncertainty Principle in Markets

As an investor, what do you prefer: certainty or uncertainty? Certainty, of course. We all do. When things seem certain, the future looks bright and we embrace risk taking. When things seem uncertain, it’s hard to imagine things ever getting better, and we shun risk at all costs. But is there really such a thing […]

Delivering Negative Alpha

“No matter how you “slice-and-dice the data,” hedge funds are struggling to meet their promise to clients to consistently produce high returns with low correlation to markets. It’s kind of: ‘I promise you a Rolls Royce and I give you a Honda.’” – Matt Granade, Chief Market Intelligence Officer, Point72 Asset Management There are more Hedge […]

  • Posted in Alternatives
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The Bond Expectations Bubble

  • Bonds
  • Charlie Bilello

“By any measure, real long-term interest rates are much too low and therefore unsustainable. When they move higher they are likely to move reasonably fast. We are experiencing a bubble, not in stock prices but in bond prices. This is not discounted in the marketplace. The real problem is that when the bond-market bubble collapses, […]

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