The Rich Got $17 Trillion Richer

Despite the many negative headlines, 2012 was a good year for markets. Listed below is a rough snapshot of total returns in USD – most asset classes returned double-digits. 2012 was a year to look through pessimism – how did your PA do? I would estimate that Global Financial Wealth rose by $17,500,000,000,000 to $162 trillion (I ignore […]

QE3 Will Work if it Shifts Expectations That the Fed Will Tolerate More Inflation

Beyond the straightforward mechanics of QE3 (i.e., the Treasury and MBS purchases), the Fed’s impact on expectations is key. The guidance indicated that support would remain in place until the economy is well in their clear. By aggressively pushing on bond yields, and more importantly, promising to maintain that effort, Bernanke and Co. definitely had […]

A Spanish Bailout? Don’t Hold Your Breath

From the guardian: It is a rule of thumb among eurozone crisis observers that the more something is denied by officials, the more likely it is to happen. With Spain’s borrowing costs at euro-area record highs, its officials insist it will not need a full bailout programme. To most of us, however, it seems no longer […]

A Week in Sovereign Wealth: From Nigeria to Qatar

Its been an important week for two funds at different ends of the sovereign investment risk tolerance spectrum – Nigeria and Qatar, both of which have sparked a series of headlines and have intentionally or not taken some new strides. The Nigerian governors breaking the deadlock on the country’s new US$1 billion fund and Qatar […]

Poised for a Correction

Over the past couple of weeks equity markets have stood up against the gods, shrugging the heightened EZ crisis and continued disappointments in global macro prints. The market seems poised for disappointment in our view as the recent price actions seem to have more than reflected our views on the latest global easing cycle. As […]

Why Spain Won’t Regain Market Confidence

Spain is back in the limelight in the EZ crisis, where it has always belonged based on its fiscal, financial and economic fundamentals. Throughout this crisis, the liquidity or solvency of various sovereigns has been determined to a large degree by market sentiment. For Spain’s borrowing costs to recede again to sustainable levels, Spain needs […]

For Every Seller There’s a Buyer

Whenever you see “money going into/out of XYZ”, your bullshit detector should go off — it usually indicates a lack of understanding of markets. Day-to-day, bonds and stocks and currencies TRADE. That is why many are on exchanges — the word is not an accident, as securities CHANGE owners. Now, foreigners can buy (be going […]

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