Investment Strategy


  • SEC's Weird Circuit Breaker Loophole Wednesday, 19 May 2010 | 2:33 PM ET

    Many traders a bit baffled as to why the SEC excluded exchange-traded funds from the new circuit breaker rules. Especially hard to understand, since two-thirds of the securities that had busted trades were ETFs. Regardless, this may create some real volatility in ETFs.

  • 'Chain of Dominoes' Giving Investors Cause For Worry Wednesday, 19 May 2010 | 2:07 PM ET

    As isolated events, the turbulence in the world markets probably wouldn't add up to much. But put everything together and you get a recipe for investor nausea.

  • With the global markets in turmoil, Glenn Dubin, founder of Highbridge Capital Management, told CNBC his hedge fund is acting defensively by dramatically cutting risk, reducing its balance sheet and crossing strategies in different regions of the world.

  • Markets to Rise 11-14% by Year-End: Equity Analyst Wednesday, 19 May 2010 | 1:10 PM ET

    Stocks slid Wednesday amid worries about increased market regulation—but a tame inflation report helped curb losses. James Shelton, CIO of Kanaly Trust, and Kim Caughey, VP and senior equity analyst at Fort Pitt Capital Group, discussed their market outlooks.

  • Global Stock Markets Spooked By New Financial Regulations Wednesday, 19 May 2010 | 12:41 PM ET
    A trader looks worried as he works in a dealing room in Tel Aviv, Israel.

    Stocks tumbled around the world Wednesday as investors were rattled by efforts in the US and Europe to tighten regulation of financial markets

  • With the Euro Zone crumbling under pressure of a debt crisis, Michael Novogratz, president of Fortress Investment Group, told CNBC his hedge fund is de-risking its position and moving toward the US to play the anti-growth trade.

  • Farr: Forget Earnings. Watch Currency! Wednesday, 19 May 2010 | 12:01 PM ET
    The European Debt Crisis - See Complete Coverage

    By and large, big blue-chip companies are executing well and have very strong balance sheets. In fact, the debt of several large-cap US multi-nationals is yielding less than like-duration US Treasury bonds. This is the first time in history this has happened.

  • Yoshikami: Reposition for Market Correction Wednesday, 19 May 2010 | 11:41 AM ET

    Corporate earnings in the U.S. have largely been overshadowed by ongoing concerns over public debt in the European continent. But if one takes the time to look past events overseas and focus on earnings numbers from U.S. firms, most have surprised on the upside.

  • Stocks Slide as Euro Pops on Greece Buzz Wednesday, 19 May 2010 | 11:08 AM ET

    Stocks declined Wednesday as the euro got a boost from news that Greece was considering leaving the European Union.

  • Farrell: Germany's Southern Discomfort Wednesday, 19 May 2010 | 11:08 AM ET

    Germany and France can't borrow or tax enough to cover all the debts of their southern neighbors.

  • The Six Best American Blue Chip Stocks: Pros Wednesday, 19 May 2010 | 11:01 AM ET

    With small-cap stocks thus far outperforming their large-cap counterparts off the market's lows, is now the time to invest in American blue chip companies?

  • Clients Worried About Goldman’s Dueling Goals Wednesday, 19 May 2010 | 10:30 AM ET
    Goldman Sachs CEO Lloyd Blankfein

    While Goldman Sachs has legions of satisfied customers and maintains that it puts its clients first, it also sometimes appears to work against the interests of those same clients when opportunities to make trading profits off their financial troubles arise. The NYT reports.

  • Why German Short Ban Is Toothless Wednesday, 19 May 2010 | 10:27 AM ET

    Trader commentary is a bit incredulous this morning over what is going on in Germany. For example, the restrictions on naked short selling of CDS has no teeth because most CDS is traded out of London, and Germany has no jurisdiction there. Even the French aren't going along with this.

  • Futures Pare Losses After CPI; Dollar Gains Wednesday, 19 May 2010 | 8:51 AM ET

    U.S. stock index futures pared their losses Wednesday after a report on consumer prices.

  • Forget Europe, Worry About China: Hugh Hendry Wednesday, 19 May 2010 | 6:15 AM ET

    Hugh Hendry, the outspoken fund manager who runs Eclectica Asset Management in London, told CNBC he is betting China’s credit bubble is about to burst, causing another global crisis.

  • What Will German Short Ban Mean for Investors? Wednesday, 19 May 2010 | 4:20 AM ET

    Germany's ban on kinds of naked short selling will have no effect on investors' ability to bet on declining prices, analysts told CNBC.

  • Wednesday Look Ahead: Watch the Financials, Euro Tuesday, 18 May 2010 | 10:19 PM ET

    The financial sector will be at the crux of market worries Wednesday, as the U.S. Senate moves closer to a vote on banking reform and German regulators explain their surprise move to ban naked short-selling on a group of bank stocks and sovereign debt.

  • SEC's Report on 'Flash Crash': Still No Answers Tuesday, 18 May 2010 | 7:12 PM ET

    The SEC has released its Preliminary Report on the Market Events of May 6th. (151 pages. Thank you.) The report does not cite any single cause for the nearly 1,000 point drop in the Dow. Importantly, the SEC "found no evidence that these events were triggered by 'fat finger' errors, computer hacking, or terrorist activity, although we cannot completely rule out these possibilities." So what did cause the drop?

  • The SEC has released details of new rules on single stock circuit breakers. As expected, "trading in a stock would pause across U.S. equity markets for a five-minute period in the event that the stock experiences a 10 percent change in price over the preceding five minutes." The important phrase here..?

  • Markets Weak on Regulation Fears Tuesday, 18 May 2010 | 5:09 PM ET

    The price of regulation: From financial regulatory reform to a ban on naked short selling in some German stocks, the markets are reacting to the prospects of more regulation, lower growth, less risk, and a higher cost of capital.