Faber News Flow

In the recent past it was suggested taking profits and reducing risk in portfolios after a stellar run from the beginning of the year. There was made specific recommendations : " A common theme through today's report is 'Profit Taking.'  Over the last couple of weeks, we have continued to discuss taking profits and rebalancing risks.  Yesterday we sold 10% of our many of holdings prior to earnings to capture some profits. We also added to some of our Healthcare holdings, which have been under undue pressure and represent value in a market that has little value currently." Was also said: "From a portfolio management standpoint, the reality is that markets are very extended currently and a decline over the next couple of months is highly likely.  While it is quite likely the year will end on a positive, particularly after last year's loss, taking some profits now, rebalancing risks, and using the coming correction to add exposure as needed will yield a bett...

At the end of March, we   reported  that the biggest concern for Goldman's clients was the gaping "market jaws", where stocks have moved sharply higher while yields have tumbled to multi-year lows, sparking investor confusion: is the bond market right in anticipating a period of acute deflation and/or recession, or is it wrong and stocks, which are less than 5% below their all-time highs, correct in their optimistic outlook. As Goldman's David Kostin wrote, it was this decoupling that was dominating client discussions: Ten-year US Treasury yields have plunged to 2.4%. From an investor perspective, stable equity prices coupled with falling interest rates means a wider earnings yield gap and implies a more attractive relative value for stocks assuming the economy does not fall into recession. And, as Kostin recounted, one client told the chief Goldman equity strategist, that it all really " depends from which direction the jaws close – through higher rates or via l...

Soybeans Could Be Next Market to Surge as U.S. Showers Drag On - Bloomberg https://www.bloomberg.com/news/articles/2019-06-21/soybeans-could-be-next-market-to-surge-as-u-s-showers-drag-on?srnd=markets-vp Soybeans Could Be Next Market to Surge as U.S. Showers Drag On Michael Hirtzer 21 giugno 2019, 23:41 CEST Corn is heading for best quarterly advance since 2010 Corn prices have been on an epic run. Now, soybeans could soon be catching up. With more rains forecast for the U.S. Midwest, oilseed plantings are under threat and hedge funds are backing away from their bearish wagers. Meanwhile, corn is heading for its best quarterly advance since 2010 and the funds are betting there's more room to run, raising their net-bullish holdings to the highest in a year. Fields are still flooded, keeping farmers from s...