Jefferies is backing a former senior SAC executive despite its own struggle with insider trading at an internal hedge fund.» Read More
This gold rally has been as orderly as the March of the Penguins — straight line, all participants headed north. And a shocking lack of volatility — the brand new CBOE/Comex Gold Volatility Index settled around 19 after its first day of trading.
When you ask traders why the price is still going up, you get the same story — lots of buyers, no natural sellers. The traditional sellers in this market — mining companies and in recent years, central bankers — have turned hoarders. And with the advent of ETFs, investors have an easy way to get long.
Looking for a catalyst to a big move, I asked Lou Grasso, trader at Millennium Futures what could happen in the gold market if the Fed initiates a second round of quantitative easing tomorrow. “If you get QE2, you could see a rally but, don’t think the market will sell off if there is no QE2”.
The Wall Street Journal has a startling statistic : the number of women on Wall Street has shrunk 2.6% in the past 10 years.
The decline of women on Wall Street is not a recent event tied to the credit crisis. Even during the real estate boom years, the ranks of women were declining.
The decline is isolated to younger women who recently entered the work force. The number of women aged 20 to 24 fell 21.8%. The number of women over 55 who are employed in financial services has grown by 56%, vastly outpacing the 34% growth in the number of over-55 year old men.
This is all the more startling because Wall Street has unquestionably become far more sensitive about gender issues over the last decade.
Sorry Westchester and Connecticut commuters, looks like it's going to be one of those Mondays.
And it's stocks. 5 points on how stocks could double from here:
A) Gold and Bond flows will get reallocated to stocks (think 1980, when gold was last at alltime highs). Bonds at 3% interest rates can't compete with growing companies with a free cash flow yield of 9%.
B) M&A activity. About $443 billion worth of M&A transactions were announced in the first 9 months of 2010 versus about $325 billion in the first 9 months of 2009. M&A is through the roof and we have another $2 trillion (the cash Corporate America has in the bank) to go (just today, NZ gets bought by IBM for $1.7 billion and INET, a company with $4.6 million in earnings Q2, is getting bought for $640 million by a private equity firm).
When CEOs are using cash to buy companies instead of stock it shows they are comfortable with their prospects going into 2011 as well as the accretive prospects of the companies they are acquiring.
The arranged marriage between Uncle Sam and its unwilling bride, the private sector, has never been more dysfunctional since the start of the financial crisis.
Both want to divorce but both fail to recognize that they need each other to grow and become better. Yes, you read that right. What has failed in this relationship is that both "partners" have forgotten their roles.
We have heard for months from the private sector that the government needs to "incentivize" business and on the flip side we've heard from the government about the "big bad banks" and that the "wealthy" need to pay more of their share. The chastising on both sides is getting them no where.
Government has to realize that the private sector is not evil. Our great nation was and still is built on capitalism (I hope). More government and regulation is not necessarily the answer. Its the quality of regulation that makes all the difference.
One of my contacts who has spoken so eloquently on the roles and relationship between government and the private sector is Wayne Huizenga.
When President Barack Obama takes the stage at Monday’s Town Hall event , many on Wall Street will be watching to see if he keeps up his attacks on banking executives as "fat cats" or adopts a more conciliatory tone.
For most of this year, Wall Street has felt it has been under siege by the White House. The Obama administration has positioned itself against Wall Street on the level of policy and with heated rhetoric.
But in recent weeks, the White House has been reaching out to Wall Street behind the scenes. White House officials have placed calls to top executives at major financial firms with the message that the administration does not view Wall Street as an antagonist, according to several sources familiar with the conversations.
Déjà Vu All Over Again: Re-Inflating The Credit Bubble? \(Wall Street Journal\) As investors suck up debt, yields fall. But has anyone bothered to read the indentures?
I was talking to a friend of mine who used to work for former hedge fund manager, Bernie Madoff (he was a market maker on the legitimate market-making side of the business).
"Are hedge funds dead?" I asked him.
"Of course not," he said. "With the current volatility and 0% interest rates you have to have your money in the game."
In fact, hedge fund total assets at $2 trillion are now higher than their pre-2008 levels.
But here’s my problem, I explained to him.
CNBC's Patti Domm and Jeff Cox discuss the jobs report and the current dilemma of long-term unemployment.
CNBC's Patti Domm and Jeff Cox discuss the recent GDP numbers and what factors have been affecting it.
Investors give and investors take away, and nowhere has that been more true lately than in value stocks.
The lack of volume in this market might make it hard for the rally to continue, says veteran trader Art Cashin.
The mid-term election will be a disappointment—but that's a good thing for Wall Street, says hedge-fund manager Todd Schoenberger.
Charles Schwab has lost a case against Morgan Stanley, accusing it of improperly recruiting brokers from a Schwab San Francisco branch.