Four Ways To Play The Water Trade

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So you want to be like Michael Burry? Look at the Water trade – Caveat emptor!! Water is rapidly becoming the hottest investment theme of this decade and it is easy to see why. Water is essential to human life but the amount of water available on the planet is finite. As the world’s population grows…

BAML’s Hartnett Sees Additional “Melt-Up” In Stock Prices

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Michael Hartnett, Bank of America Merrill Lynch’s chief investment strategies, is bullish risk assets based on the bank’s positioning, profits and policy analysis. As the stock market continues to climb in the face of political uncertainty, it is “not dangerously euphoric” yet, Hartnett muses. This situation has not played itself out yet, he concludes in a…

Hedge Funds’ Next Big Short: US Malls

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Hedge funds are always on the lookout for the next big short a phrase coined by Michael Lewis in his book, The Big Short, which details the exploits of a group of funds that made billions betting against the US sub-prime housing market in 2008/2009. Last year, the favorite big short among funds was the Chinese…

Transaction Sizes Suggest Relative US Middle-Market Popularity For PE

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The median buyout size of a US middle-market company fell slightly to $134 million in 2016, down a mere $4 million from the prior year. Given the minuscule decline, it’s clear there’s still plenty of competition from not only strategic acquirers in the upper end of the market but also fellow PE firms keeping transaction sizes…

US economic uncertainty 'may hit stocks'

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The Chinese stock market could face downside risks if external factors such as the ambitious economic package and tax reforms under US President Donald Trump's administration to boost the US economy fail to materialize, analysts said on Monday. Shigeki Sakaki, chief strategist of investment and research division at Nomura Asset Management, warned that the uncertainty over…

How Disagreements In Inflation Projections Affect Fixed Income Yields

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The old Ben Franklin quote says just two things are certain: death and taxes. But a modern update might include a third: inflation. Many who lived through the early 1980s were traumatized by the double-digit inflation that gnawed away at retirement funds or put mortgages out of reach by driving up interest rates. Inflation has been…

Uncertainty Is Good For The Stock Market

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The following is an excerpt from our weekly Market Brief. If you’re interested in learning more about Market Briefs and the Macro Ops Hub, click here. Here’s an interesting question: Is the Trump administration’s erratic policy and governing style bullish or bearish for stocks? Lately, I’ve read a number of analyst notes talking about how the…

The Truth About Fiduciary Duty Delegation

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In early February, President Donald Trump signed an executive order that could well derail the final implementation of the Department of Labor’s fiduciary rule, which requires financial advisors to act as fiduciaries when dealing with Individual Retirement Accounts as well as pension plans and defined contribution plans. The executive order directs the Labor Department to “prepare…

Import tax would hurt Jaguar Land Rover, help rivals

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As Washington mulls a tax on imports, an auto industry study suggests the policy would deliver the sharpest blow to Tata Motors' Jaguar Land Rover while giving a leg up to Tesla and Ford Motor. In what it calls a "thought exercise," researcher Baum & Associates LLC estimates most automakers would need to raise vehicle prices…

China to further squeeze asset bubble in 2017

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BEIJING - China's property sales have fallen since the government began tightening and analysts expect more to be done in 2017 to deflate the bubble. The China Index Academy, a real estate research institute, said property sales in China dropped 36.7 percent month on month in January, in terms of floor space. On a yearly basis,…