Weekend Reads: Fear, Chaos, and All-Time Highs

Third is inadequate ability to diversify.  This is largely a function of the two problems listed before, and benchmarking and indexing, which has been correlating the markets more and more.  I’m not talking about short-term correlations — diversification applies of the time horizon of the assets, which is long.

The Biggest Problems for Investors Today – (Aleph Blog)


The VIX was conceived after the Black Monday crash in 1987, when the market fell 23% in a single day. The measure used stock-market bets, known as options, to gauge expectations for the speed and severity of market moves, or what traders call volatility.

The Snowballing Power of the VIX, Wall Street’s Fear Index – (Wall Street Journal)


Net inflows into managed futures strategies in the quarter ended March 31 were $4.9 billion; total assets under management in the category, including investment gains/losses, rose 2.2% from $125.8 billion as of Dec. 31, showed data from eVestment LLC, Marietta, Ga.

Managed Futures Setting Stage for Dramatic Growth – (Pensions & Investments)


So why aren’t investors more fearful? It’s hard to know for sure — interpreting market behavior is usually a sucker’s game. But it’s possible to lay out a few, not mutually exclusive, theories:

Why Is Trump Causing Chaos In Washington But Not In The Stock Market? – (FiveThirtyEight)


It’s a mistake for investors to dismiss the entire hedge fund industry because it has underperformed the stock market in recent years. There’ll come a time when the market won’t be so kind to those invested in low-cost, passively-managed index funds. And when that time comes, what appears to be exorbitant fees charged by fund managers will seem totally justified.

Why high-cost money managers aren’t worried about the passive investing boom – (Yahoo Finance)


A NerdWallet study of medical crowdfunding said GoFundMe had indicated that $930 million of the $2 billion raised in the period the study analyzed was from medical campaigns.

American Health Care Tragedies Are Taking Over Crowdfunding – (Bloomberg)


As the robot war on Wall Street stock pickers heats up, there’s a new line of attack from the algorithmic set: IBM’s Watson supercomputer has been hired to help run an ETF and pick stocks than can achieve better performance than the broad U.S. stock market index.

IBM’s Watson supercomputer is getting into Wall Street stock-picking – (CNBC)


I’ve often joked that this show should be called “this is who you are up against,” because I am so often having conversations with brilliant people across the investment landscape who are effectively my competition and yours.

Quant vs Traditional Investors, and How Alphas Become Betas, with Leigh Drogen [Invest Like the Best, EP.41] – (Investor Field Guide)


It’s possible that the frat boys and lacrosse bros will find a way to get into the quant hustle and replicate how they used to act back when merger arb, long/short equity or event-driven were a big deal. But it hasn’t happened yet.

I’d Like to Solve the Puzzle Pat – (The Reformed Broker)


The European Commission published plans on Tuesday that would force UK-based clearing houses, such as the London Stock Exchange’s LCH, to stick to EU regulations and accept requirements set by the European Central Bank if they want to handle large volumes of euro-denominated trading.

Brexit Issues – (Financial Times)


The required wages ranged from $126,454 for Hawaii down to $91,140 in Connecticut. The least costly states after Indiana were Arkansas, Ohio, Missouri, and Kentucky, all in the low to mid-$60,000s.

How Much Do You Need to Make to Send a Kid to College? – (Bloomberg)


American growers are taking advantage of technologies that weren’t around two decades ago to squeeze more profit from crops, especially after record harvests left global surpluses and plunging agricultural income.

Sophisticated Farmers Cut Out Trading Giants in Profit Hunt – (Bloomberg)


The trains stopped to pick up milk from what later became Edison Park, in an area then occupied by dairy farms, Suerth said.

 TBT: Edison Park’s First Train Station Was Built More Than 160 Years Ago – (DNA Chicago)

The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.