- RBC’s head of cross asset strategy Charlie McElligott dons his full wonksh equity analyst hat today, exposing “The April Effect,” and the specific risk of “nasty double whammy” of levered long-short unwinds should momentum stall.
- Quick note of warning as we transition into the new quarter, with potential for major thematic / sector / factor reversals in stocks. The following observation regarding April seeing a seasonal ‘momentum’ factor market-neutral strategy unwind is ‘equities wonk-ish,’ but with real potential cross-asset impact. As we know, the Fed watches equities because there are potential implications with regards to broad US ‘financial conditions’ on consumer and economic confidence. Thus, the scale of potential equities volatility does matter across macro, especially in light of general buyside portfolio ‘crowding’ / ‘high beta’ exposure (into ‘growth’ right now especially) which could exacerbate the dynamic.
Read more at:RBC Warns “Beware ‘The April Effect’… Risk Of A Nasty ‘Double Whammy'”
- Are millions of Americans about to see the big, juicy pensions that they were counting on to fund their golden years go up in flames in the biggest financial disaster in U.S. history? When Bloomberg published an editorial entitled “Pension Crisis Too Big for Markets to Ignore“, it simply confirmed what a lot of people already knew to be true.
- Pension funds all over America are woefully underfunded, and they have been pouring mind boggling amounts of money into very risky investments such as Internet stocks and commercial mortgages. Just like with subprime mortgages in 2008, this is a crisis that everyone can see coming well in advance, and yet nothing is being done about it.
- On a day to day basis, Americans generally don’t think very much about pensions. Most of those that have been promised pensions simply have faith that they will be there when they need them.
Read more at:The Ticking Time Bomb That Will Wipe Out Virtually Every Pension Fund In America
- What in the world has happened to the United States? We are rapidly getting to the point where political correctness is in danger of becoming our national religion. Of course most people would not even call it a “religion”, but for most Americans this unwritten set of rules shapes everything that they think, do and say. Many had been hoping that the spell of political correctness would be broken by the election of Donald Trump, but that obviously has not happened. The forces of political correctness still have a stranglehold on our education system, on all forms of entertainment, on our legal system, and on most of the politicians in both political parties.
- The unwritten rules of political correctness are shifting and changing all the time, and if you don’t keep up with them the penalties can be extremely severe.
- If you do or say the wrong thing at the wrong time, you could lose your friends, you could lose your job, and you could potentially even lose your reputation.
- In fact, there have been numerous people over the past year that have been publicly crucified in the court of public opinion for doing or saying something that was not politically-correct.
Read more at:12 Signs That America Has Become A Politically-Correct Madhouse
- The headlines are awash with the recent tensions with North Korea, and most are focused intently upon this act of the play that has been running hot for several years, now. Akin to the proverbial frog in cold water, however, we are not paying as much attention to the surveillance state that is continuing to wrap its tentacles around us. Eurasia is our ally, Eastasia is our enemy…and nobody notices that the chocolate ration has been diminished. While everyone focuses on what is reported in the headline news, everybody misses what is happening right before their eyes.
- Point of Sale is the new jail, the ubiquitous surveillance system that records your every purchase and stores it in a personal database…an algorithm…in the government storage facility in Utah. Look above that register. It doesn’t matter whether you have a debit or credit purchase or not. Paying cash? Your anonymity only lasts until your image is captured in the little black dome camera right above your head…right next to the register. The sale is recorded, as well as your image.
Read more at:The Transformation Of Our Nation Into A Surveillance State Is Almost Complete
- Privacy advocates on Monday are urging Americans to call their elected officials, warning that there are only 24 hours left to “save online privacy rules” before the U.S. House of Representatives votes on a measure that would allow major telecom companies to collect user data and auction it off to the “highest bidder.”
- Wasting no time, the House is expected to begin debate late Monday on S.J. Res. 34, a Congressional Review Act (CRA) resolution to repeal the Federal Communications Commission’s (FCC) privacy provision, implemented under former President Barack Obama, which requires that providers such as Comcast, AT&T, and Verizon get a user’s permission before collecting or selling sensitive data.
- As Common Dreams reported, 50 Republican senators voted to advance the resolution last week.
Read more at:Congress Poised To Obliterate Broadband Privacy Rules
- If you thought that the Obamacare debacle was bad, just wait until you see what happens next. The continuing resolution that is currently funding the government expires on April 28th, and if a new funding agreement is not reached prior to that time, there will be a government shutdown like we witnessed in 2013 starting on April 29th. Unfortunately, as I will explain below, if a government shutdown happens it may go for a lot longer than just a couple of weeks this time around.
- April 28th may sound like it is quite some time away, but because the congressional calendar has so many “holes” in it, there is actually not very much time for Congress to act.
- If you can believe it, there are only 12 “legislative days” between now and April 28th, and if something is not done on one of those 12 days the government will shut down on April 29th.
- Needless to say, a government shutdown would greatly rattle the financial markets.
Read more at:After Dramatic Obamacare Failure, Trump Now Faces A Looming Government Shutdown He May Not Be Able To Prevent
- Why are so many people suddenly moving away from major U.S. cities? Recently, I wrote about the mass exodus that is happening out of the state of California, but the truth is that what is happening there is just part of a national phenomenon. The populations of some of our largest cities are steadily shrinking, and many experts are completely mystified by the seismic demographic shifts that we are now witnessing. Of course there are a whole host of reasons why people would want to move away from huge cities such as Chicago, Detroit, Baltimore and Cleveland.
- For some families, it simply comes down to wanting a better life for their children. But as you will see below, there are others that believe that things in this country are about to take an apocalyptic turn, and the big cities will not be a place that you want to be when economic collapse, rioting, looting, civil unrest and crime are all spiraling out of control.
- According to data just released by the U.S. Census Bureau, Chicago took the prize for the biggest population loss from 2015 to 2016, and it was followed by Detroit and Baltimore…
Read more at:Thousands Of Americans Are Fleeing The Big Cities In Preparation For The Coming American Apocalypse