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The Fed's War On Active Management

Takeaway: The Fed is hell-bent on making ETF distributors and robo-advisors out of all of us. Who will fight back against such tyranny?

The Fed's War On Active Management - fed

 

The divergence between asset prices and their fundamentals is only matched by the divergence between sentiment among active managers and all-time highs in the SPY.

 

The latest ICI data show that a net $26B was pulled out of long-term, US-focused stock mutual funds in the week-ended August 3rd. ICI has now recorded 23 straight weeks of outflows from these funds, for a total of ~$100B. It compares this to the $170.7B that left such funds for all of 2015. In the past 17 months, ICI has recorded only four weeks of net inflows for such funds. The Fed is hell-bent on making ETF distributors and robo-advisors out of all of us.

 

Who will fight back against such tyranny?

 

The Fed's War On Active Management - fund flows 8 10

 

Editor's Note: The snippet above is from a note written by the Hedgeye Macro team and sent to subscribers this morning. Click here to learn more.


Daily Market Data Dump: Thursday

Takeaway: A closer look at global macro market developments.

Editor's Note: Below are complimentary charts highlighting global equity market developments, S&P 500 sector performance, volume on U.S. stock exchanges, rates and bond spreads, key currency crosses, and commodities. It's on the house. For more information on how Hedgeye can help you better understand the markets and economy (and stay ahead of consensus) check out our array of investing products

 

CLICK TO ENLARGE

 

Daily Market Data Dump: Thursday - equity markets 8 11

 

Daily Market Data Dump: Thursday - sector performance 8 11

 

Daily Market Data Dump: Thursday - volume 8 11

 

Daily Market Data Dump: Thursday - rates and spreads 8 11

 

Daily Market Data Dump: Thursday - currencies 8 11

 

Daily Market Data Dump: Thursday - commodities 8 11


CHART OF THE DAY: Poking the Productivity Bear

Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye Director of Research Daryl Jones. Click here to learn more.

 

"... As we've highlighted in the Chart of the Day, productivity, which is a proxy for the goods and services produced each hour by Americans, has now declined for three straight quarters. As the chart shows, productivity declined both sequentially and year-over-year. This was also the first time since 1979 that productivity has declined for three quarters in a row."

 

CHART OF THE DAY: Poking the Productivity Bear - 08.11.16 chart


Early Look

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Relied upon by big institutional and individual investors across the world, this granular morning newsletter distills the latest and most vital market developments and insures that you are always in the know.

McMonigle: An OPEC Meeting Spoiler Alert

In this brief HedgeyeTV video, Hedgeye Potomac Senior Energy Policy analyst Joe McMonigle explains why Saudi Arabia and Iran will once again dash OPEC oil production “freeze” discussions.


Cartoon of the Day: Sign of the Times

Cartoon of the Day: Sign of the Times - 10 yr yield cartoon 08.10.2016

 

Ten-year yields, globally, were down across the board this morning. Got #GrowthSlowing?


No Holding Back... Saudis Ramping Production Despite Oil Production "Freeze" Rumors

Takeaway: Saudis ramp oil production. That's right. No production freeze. Just as we've been saying.

No Holding Back... Saudis Ramping Production Despite Oil Production "Freeze" Rumors - Oil cartoon 04.07.2016

 

"Saudi Arabia told OPEC that it pumped a record 10.67 million barrels of oil a day in July to meet a summer surge in domestic demand, an increase that will do nothing to endear the group’s leading exporter to other members seeking output limits to shore up prices," Bloomberg writes.

 

That's right. No production freeze. Just as we've been saying. Check out Hedgeye Potomac Senior Energy analyst Joe McMonigle's piece "OPEC Oil Production "Freeze" Talk Will Have Similar Ending ... No Agreement." McMonigle has been making the case that Saudi Arabia and Iran have no incentive to agree to an oil production freeze anytime soon.

 

Here's a key chart from Bloomberg (with our commentary in red). As you can see, so far this year, Joe has been right. Saudia Arabia has, in fact, ramped production.

 

No Holding Back... Saudis Ramping Production Despite Oil Production "Freeze" Rumors - freeze


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