Finance Trends Letter

It's time once again to roll up all the great stories and article features of the week and post them up here for your reading & viewing enjoyment. Here we go: 1. John Arnold of Centaurus Energy is crowned the new king of hedge funds . Thanks to Fintag for the heads up on this Guardian article chronicling the latest roll call of hedgie masters and their place among the world's top financiers. 2. "Why some funds do not want your money" . The Financial Times reports on the difficulty some investors face in trying to invest in the hedge funds of their choice. Some investors have even tried to trick their way in! Article related note : Did you know that there is now a small secondary market that lets investors buy and sell hedge fund investment units? I did not. Read all about it at the link above. 3. Uranium crosses the $100 mark . It's been quite a ride for anyone who's been watching the chart or investing in the metal or in shares of uranium producers. Fro...

Commodities, the latest jobs report, a "bubble" in US Treasuries, and more food for thought; all in our latest, "Features of the week" . 1. Stocks drop after weak jobs report (NY Times). "...stocks fell sharply on news that the American economy had shed 533,000 jobs in November, its worst monthly losses in 34 years. The unemployment rate rose to 6.7 percent from 6.5 percent, and economists said the number of Americans without work would continue to swell as the recession spreads like an oil spill." 2. iTraxx Crossover index points to high risk of corporate default . "The Markit iTraxx Crossover index rose above 1,000 basis points for the first time since it was created in 2004, implying a record number of companies are on the verge of default because of deepening financial problems... ...The index, which measures the cost of protecting junk-grade companies against default, has risen sharply in the past month as sentiment has worsened because of gloom...

Traders and investors: get set for our, "Features of the week" . 1. Hedge funds face big losses in Madoff fraud case (WSJ). "A number of prominent funds of hedge funds are believed to have invested money in portfolios established by Bernard Madoff, a securities trader and investment adviser who was arrested yesterday before appearing at a Manhattan court charged with securities fraud. U.S. authorities claimed Mr. Madoff told employees at Madoff Investment Securities earlier this month that the investment advisory activities of his business had been "a giant Ponzi scheme." " 2. Dow/Gold ratio : looking at market performance in terms of gold. 3. Russians buy jewelry, hoard dollars as ruble plunges . 4. Fed refuses to disclose recipients of $2 trillion loans (Bloomberg). "The Federal Reserve refused a request by Bloomberg News to disclose the recipients of more than $2 trillion of emergency loans from U.S. taxpayers and the assets the central bank is ...

We have a lot of great stuff to share with you in this weekend's edition of, "Features of the week" . From the high price of platinum, to a sit down with investment author and historian Peter Bernstein, you're sure to find something of interest here. So read, watch, and enjoy! 1. Warren Buffett's bid for municipal bond contracts guaranteed by MBIA, Ambac, and FGIC was one of the biggest business news stories this week. Some say the plan will save the muni market , and doom MBIA & Ambac. 2. Jim Chanos talks to Bloomberg News about regulations constraining investment managers in the midst of the ongoing credit crisis. 3. Investor, author, and historian, Peter Bernstein is interviewed for FT's View from the Markets program. 4. Will the UK housing market follow the US? UK house prices have surpassed US prices both in absolute terms and relative to income. 5. China spurs coal-price surge . Yes, this is likely to affect Europe and the US; some background inf...

Welcome to our "Features of the week" , where we review some of the week's most interesting articles features and news stories. Grab a chair and browse! 1. Bernanke and Bush attempt to calm the markets with their "plan to help homeowners" and the broader economy. Bush and Paulson stress that their is focused on homeowners in trouble, not a bailout of lenders. Funny, because this whole mess reminds me of the early 1990s S&L blowup more with each passing day. More on this from Bear Mountain Bull and The Big Picture . 2. "Mozilo Cashed Out at Top of Market" . Brett Arends on the hefty insider selling of Countrywide Financial shares. 3. Cleaning up on the meltdown . BusinessWeek reports on market participants who took the other side of some popular trades during the recent credit market turmoil. 4. A tribute to Dr. Kurt Richebacher , patriarch of the "anti-bubble" economists. 5. Jeffrey Tucker and Mark Thornton discuss the Mises Institute...

Inflation, furor over oil prices, '87 crash reminiscences, and a lot more. That's what we have in store for you in this week's edition of, "Features of the week" . 1. From the Economist, "How the Fed made the subprime mess worse" . 2. A crude oil super-spike . We're seeing a lot of drivel this week about a crude oil price bubble as prices have shot well past the $80 mark towards the $90 level. As of today, some "experts" are even appearing on TV to decry the speculative price move and declare oil prices to be "not appropriate" . That settles it; close the markets, we now have an expert to set prices for us at the "appropriate" level! Sorry to repeat this information so quickly, but for anyone who would like to revisit the fundamentals that have been driving the crude oil and energy markets for the past several years, please see our recent post, "The path to $80 oil" . 3. "When Crash Means 'Buy'...

Welcome to our Friday edition of, "Features" . Enjoy this week's collection! 1. "Europe's tiny tax havens should be left in peace" , writes Bloomberg's Matthew Lynn. For more on this issue, please see the first item in our Feb. 22 "Features of the week" . 2. Commodites have been a saving grace for investors . 3. How have the S&P 500 and US home prices fared in gold and euro terms? FT's John Authers examines this question in Friday's "Short View" column. 4. A disappointing February payroll report has convinced the holdouts (and campaigning politicians) that the US is in a recession. 5. "Margin call, gentlemen". Carlyle Capital Corp shares were suspended on Friday after lenders marked down the value of the firm's residential mortgage-backed securities. An excerpt from this FT article details the problem: "CCC is the latest casualty of the banks’ increasingly unforgiving attitude towards even the most po...

Well, it's been a rough week for many in the markets, as the fellow in the picture can attest. As we finish out the week this Friday, the Federal Reserve has lowered the discount rate by 50 basis points to 5.75% in an effort to ease liquidity and shore up the financial markets. So far, markets in Europe and the U.S. are rallying higher on the move. Meanwhile, disaster has hardly limited itself to the world's financial markets. A bridge collapse in China, a Utah mining accident, deadly bombings in Iraq, and a powerful earthquake in Peru have left many dead and suffering in their wake. Please take a moment to consider these tragedies and their effect on the victims' friends and families. If you are in a position to help someone far away or nearer to you, please do. Having said all that, let's get started with our "Features of the week" . There are many interesting articles and interview features ahead, so kick back and enjoy. 1. Fed cuts discount rate to 5.75% ....

What's happening in the world of commodities, derivatives, and global stock markets? All this and more, ahead. Enjoy our, "Features of the week" . 1. CRB index suffers its worst monthly drop in 28 years . 2. The Short View: Commodities and inflation . 3. Are we trading against Hank Paulson ? (Hat tip: BMB ) 4. Financial sector has 7 of 10 best days in 2008 . 5. Global stock market performance round-up via Investment Postcards. "In spite of a “teaser” of a rally and stock markets holding their July 15 lows, equity markets were still in the red for the month of July. The MSCI World Index was down 2.5%, with the MSCI Emerging Market Index (-4.2%) faring even worse." 6. Frank Barbera charts the US dollar, stocks, and commodity markets. 7. Gary Dorsch explores the arcane world of commodities and currencies . 8. "The Cost of Socialism" - John Browne, Euro Pacific Capital. "Over the past few decades, the United States has steadily evolved from a natio...

A taste of what's to come in this Friday's, "Features of the week". From BusinessWeek, Maria Bartiromo's recent interview with Jim Rogers : "MARIA BARTIROMO What do you think of the government's response to the economic crisis? JIM ROGERS Terrible. They're making it worse. It's pretty embarrassing for President Obama, who doesn't seem to have a clue what's going on—which would make sense from his background. And he has hired people who are part of the problem. [Treasury Secretary Tim] Geithner was head of the New York Fed, which was supposedly in charge of Wall Street and the banks more than anybody else. And as you remember, [Obama's chief economic adviser, Larry] Summers helped bail out Long-Term Capital Management years ago. These are people who think the only solution is to save their friends on Wall Street rather than to save 300 million Americans. So what should they be doing? What would I like to see happen? I'd like to see...

Welcome to our features of the week. Lots of interesting article links and interviews ahead, so enjoy! 1. Who will succeed Warren Buffett as chief investment officer at Berkshire Hathaway? BNN interviews Canadian investor Jeff Hull and finds the model for one potential candidate. 2. CME raises its offer for CBOT . The Chicago Mercantile Exchange has increased its offer for CBOT Holdings by 16 percent in an effort to stave off a rival bid from Intercontinental Ecxhange (ICE). Will CBOT make a match or choose to go it alone? See FT's analysis for more. 3. Newspapers aren't dead yet. Sam Zell discusses his deal for the Chicago Tribune and the role of newspapers in the internet age, as well as his view of the commercial property market, on FT.com's View from the Top . 4. Newsvine on "The censorship of Ron Paul" . 5. The Economist on "How to fight back" against Russia's "inept bullying". 6. Gordon Gekko is back , and this time the popular Wall...

We've got a lot of information to share in this Friday's edition of our "Features of the week" . And while I'm definitely a proponent of being selective when it comes to information, I do hope you'll all take some time to check out these article features which cover a number of different, and fascinating, topics. Having said that, enjoy! 1. "Good Companies, Bad Karma" . A Q&A discussion with marketing guru Jagdish Seth. 2. "Freedom, not climate, is at risk" . An FT comment by Vaclav Klaus. 3. The cost of gasoline around the world . Excellent graph and analysis from The Oil Drum . 4. There's a downside to Alberta's oil boom and it comes in the form of soaring rents and shortages in education, recreational opportunities, and medical services. 5. Building cities in the desert sand . Prince Fahd bin Sultan and construction mogul Bahaa Hariri hope to build megacities in Saudi Arabia where desert now stands. Will their long term pla...

What a week it's been. Subprime mortgages and collateralized debt obligations made waves on Wall Street as two Bear Stearns hedge funds collapse under the weight of their subprime-heavy CDOs. Meanwhile, the financial community worries that banks, pension funds, and hedge funds owning these instruments will have to write down the value of their holdings, spurring fears of a broader fallout from the ongoing subprime deterioration. Violence rocked the Middle East as a sort of civil war rages on in Gaza between Palestinian factions Fatah and Hamas. Meanwhile, a suicide truck bombing of a Baghdad mosque has left many dead and injured as the survivors wonders who is to blame for the divisive attacks. Plus, Blackstone goes public (slightly ahead of schedule) and proceeds to surpass its $31 offering price by 13% during the first day of trading. Read on for news of all these issues and more, as we list our features of the week. 1. Blackstone Group cashes out of its private-firm status as it...

Interesting stories and interview links lie ahead. Read on for the features of the week... 1. Reactions to last night's Republican debate. Ron Paul is doing quite well in MSNBC.com's online rating poll , sharing high positive marks with Mitt Romney. 2. EU regulations to affect the City of London . Apparently, New York is not the only city feeling the pressures of financial regulation; Londoners are a bit agitated over regulations from Brussels that will "attempt to create a harmonised, pan-European market for financial services". See FT's story for futher details of the Markets in Financial Instruments Directive, or Mifid. 3. Dow Theory flashes a "Buy" signal . The technical confirmation is taken as a bullish indicator by the investment officers quoted in the article, but I'd like to get Richard Russell's (editor of the Dow Theory Letters ) take on it. I know John Mauldin said Richard Russell kind of took him by surprise recently by saying he exp...

Well there's a title designed to catch your attention. "Credit market meltdown". It's always interesting to talk about turmoil and disaster, especially when it's the kind of disaster that's happening right before your eyes, as opposed to the more usually seen and heard theoretical musings on potential calamity. You know the kind; it usually sounds something like, "well, we could be headed for disaster as a result of x...". Well now "x" is here. And today's "x" is a fallout in the credit derivatives market that's spreading to other parts of the global financial system and driving up the cost of available credit. Here's more from FT, "Credit derivatives turmoil bites" : "Turmoil in the credit derivatives markets is having an increasingly brutal impact on the wider financial system as a vicious cycle of forced selling drives risk premiums on company debt to new highs. The trend accelerated on both sides of ...