Hedge Funds Are Holding Huge Long Positions

Key bit:  The chart below shows the Goldman sentiment Indicator, which ranks net futures positioning versus the past 12 months. Readings below 10 or above 90 indicate extreme positions that are significant in predicting future returns. With the current 90 print, “predicted future returns” are sharply negative.

gs sentiment_0

More here from Zerohedge.com:  http://www.zerohedge.com/news/2016-08-28/hedge-funds-are-now-all

What If Only Tax Payers Voted

From Zerohedge.com: If “pay-to-play” is good enough for Hillary’s State Department, then why not the nation?

20160828_tax_0

Jim Rogers Explains What He Is Doing Before “The Next Time The World Comes To An End” (ZH)

http://www.zerohedge.com/news/2016-08-27/jim-rogers-explains-what-he-doing-next-time-world-comes-end

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Global central bankers, stuck at zero, unite in plea for help from governments

https://ca.news.yahoo.com/global-central-bankers-stuck-zero-unite-plea-help-123135496–business.html

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Hedge Funds Continue To Struggle

Key bit from Bloomberg.com:   For hedge funds, the news is getting worse.

Investors pulled an estimated $25.2 billion from hedge funds last month, the biggest monthly redemption since February 2009, according to an eVestment report.

The monthly withdrawals were the second straight for the beleaguered industry, which saw $23.5 billion pulled in June. They bring total outflows this year to $55.9 billion, driven by “mediocre” performance after a number of funds lost money last year, according to Wednesday’s report.

 “Unless these pressures recede, 2016 will be the third year on record with net annual outflows, and the first since the outflows in 2008 and 2009 — a result of the global financial crisis,” eVestment said.
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Even the best and the brightest are struggling to provide returns.  It’s rough out there. 
Hat tip Josh Brown of thereformedbroker.com

Active Managers Are All In

Key bit:  Active Managers, as measured by NAAIM, have increased their exposure to U.S. equities to 96.5%. This is quite high, in the 98th percentile of historical readings dating back to July 2006.

naaim1

Many seem to be interpreting this development as a bearish signal, a contrary sentiment indicator. If active managers have a high exposure to equities, they say, it must be a sign of an impending top.

We tend to agree with the above comment.  A top may not be in the place but a healthy pullback certainly appears more likely as expectations enter extreme levels.

Read the whole thing:  https://pensionpartners.com/when-active-managers-go-all-in/?utm_source=ReviveOldPost&utm_medium=social&utm_campaign=ReviveOldPost

Hat tip Charlie Bilello

History Lessons And Investing

Here are a few highlights from a great list of historical investment facts put together by Tony Isola:

*Most market corrections don’t turn into bear markets.

*Stocks are six times more likely to be up 20% than down the same amount.

*Uncertainty is always present and it is not a wise choice to use it as an excuse not to invest.

*Most recessions haven’t turned into depressions.

*Stocks are in a bull market 85% of the time.

*Diversification works, just not every year.

Fascinating stuff, well worth the read.  More of the list is here:  http://tonyisola.com/2016/08/the-united-states-of-market-history-amnesia/

Hat tip Josh Brown of thereformedbroker.com

 

USO

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