Summers Says Markets Underestimating Risks of Trump Presidency

Summers Says Markets Underestimating Risks of Trump Presidency
Former U.S. Treasury Secretary Lawrence Summers said investors are being far too sanguine about the risks associated with Donald Trump’s incoming administration. The Harvard professor, a Democrat who was Treasury chief under Bill Clinton, cited the possibility of protectionist measures by the U.S. as well as changes to foreign policy and domestic social policy as issues that are creating “extraordinary... Read More

The Golden Era of Hedge Funds Draws to a Close With Clients in Revolt

The Golden Era of Hedge Funds Draws to a Close With Clients in Revolt
Drinks flowed as hedge fund titan Robert Mercer, dressed as Mandrake the Magician, partied with Donald Trump, dressed as, well, Donald Trump. The occasion that early December evening was Mercer’s 2016 holiday costume party, an intimate gathering of 250 at his Long Island estate. This year’s theme: “Villains and Heroes.” In Trump, Mercer and his fellow hedge funders had much... Read More

Barclay CTA Index down 0.40 per cent in September

Barclay CTA Index down 0.40 per cent in September
The index is up 0.10 per cent year to date. “The US Fed, in spite of its hawkish tone, opted to hold rates steady which roiled financial markets,” says Sol Waksman (pictured), founder and president of BarclayHedge. Seven of Barclay’s eight CTA indices had losses in September. The Diversified Traders Index was down 0.83 per cent, Currency Traders lost 0.78... Read More

The Next 10 Years Will Be Ugly for Your 401(k)

The Next 10 Years Will Be Ugly for Your 401(k)
It doesn’t seem like much to ask for—a 5 percent return. But the odds of making even that on traditional investments in the next 10 years are slim, according to a new report from investment advisory firm Research Affiliates. The company looked at the default settings of 11 retirement calculators, robo-advisers, and surveys of institutional investors. Their average annualized long-term expected return? 6.2 percent. After 1.6... Read More

Uneasy Calm Grips Markets Suddenly Silent Before U.S. Vote

Uneasy Calm Grips Markets Suddenly Silent Before U.S. Vote
It’s happening again. Markets around the world, from stocks to metals and bonds, have slowed to a crawl, revisiting lows in volatility that have stood for two years. Muted moves just sent a cross-asset gauge of price swings in equities, rates, currency and commodities to the lowest since 2014. That everything should go quiet at once just before the U.S. election... Read More