Posts Tagged ‘Treasury Direct account’

Money Market Funds: No Longer Safe

Money Market Funds: No Longer Safe

Courtesy of Karl Denninger at The Market Ticker

Safe and money

Here’s something you won’t see talked about much – unless you dig for it.

Zerohedge covered it – the fact that money markets are no longer guaranteed liquid.  But look at what The Wall Street Journal had to say:

Money-market funds could be forced to pay out less interest under new federal rules designed to make them sturdier.

With memories still raw from the 2008 meltdown of Reserve Primary Fund, the Securities and Exchange Commission released rules on Wednesday that require funds to hold more liquid and higher-quality assets and disclose the value of their assets per share more frequently.

This makes it sound as though the funds will be safer – and more liquid – right?  That is, there will be less risk of what happened when Reserve broke the buck and then threw up gates.

Bloomberg said:

Funds must be able to sell 10 percent of their assets in one day and 30 percent within a week under rules approved today by the Securities and Exchange Commission. The SEC’s 4-1 vote also imposed new restrictions on buying lower-rated securities and required more disclosure on declines in funds’ share prices.

“These rules will take important initial steps toward making money-market funds less vulnerable to runs,” SEC Chairman Mary Schapiro said at a meeting in Washington. “The new rules will have substantial benefits for investors.”

Less vulnerable to runs, eh?  That’s a rather nuanced statement that at first sounds like "less likely for you to get stuck without access to your money", right?

Well, don’t be so sure.  Buried in there is this:

Suspension of Redemptions: The new rules permit a money market fund’s board of directors to suspend redemptions if the fund is about to break the buck and decides to liquidate the fund (currently the board must request an order from the SEC to suspend redemptions). In the event of a threatened run on the fund, this allows for an orderly liquidation of the portfolio. The fund is now required to notify the Commission prior to relying on this rule.

Formerly the fund had to seek permission to suspend redemptions.…
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Zero Hedge

Erdogan Has Ordered Turkish "Operations" Against Political Enemies On US Soil

Courtesy of ZeroHedge. View original post here.

A spokesman for Turkish President Erdogan said during a Friday press conference that "operations" have been ordered against Turkey's political enemies, including those on US soil

"Our relevant units and institutions will continue their operations in the countries the F...



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Phil's Favorites

The next cold war? US-China trade war risks something worse

 

The next cold war? US-China trade war risks something worse

There’s a chill in the air these days. AP Photo/Andy Wong

Courtesy of Charles Hankla, Georgia State University

President Donald Trump is making good on his pledge to escalate the trade war with China by imposing tariffs on US$200 billion of Chinese goods. The Chinese government, for its part, is already retaliating with new taxes on $60 billion of American imports. ...



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Kimble Charting Solutions

Lumber prices fall 45% this year, sending macro message?

Courtesy of Chris Kimble

CLICK ON CHART TO ENLARGE

 Home and Lumber prices can send important messages to how the economy is doing. The chart above looks at Lumber prices over the past 11-years.

So far this year, Lumber and the DJ Home Construction index is diverging against the broad market. This chart highlights that Lumber is now down over 40% from its peak earlier this year.

Below compares the performance of the S&P to the DJ Home Construction index this year-

...



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Chart School

Weekly Market Recap Sep 23, 2018

Courtesy of Blain.

More saber rattling between China and the U.S. did little to distract the market.

On Tuesday, President Donald Trump reiterated his hard-line stance on China during a news conference with Polish President Andrzej Duda and said the U.S. had “no choice” but to levy another $267 billion in duties on China. That would come on top of announced tariffs on about $200 billion in Chinese goods announced late Monday.  China responded with tariffs of 5% to 10% on $60 billion worth of U.S. products that will take effect Sept. 24, and said it may introduce more measures if the U.S. goes ahead with higher tariffs.

This seems to be the prevailing thought process, ...



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Insider Scoop

Buybacks On The Rise, But Buyback ETFs Are Lagging

Courtesy of Benzinga.

Related PKW Buybacks Are Falling, But The Buyback ETF Is Rising Gaining Insight With A Buyback ETF Related ...

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ValueWalk

The U.S. trade deficit with China is a dangerous scorecard as the mainland remains an unlikely source of U.S. profits

By Joe Quinlan. Originally published at ValueWalk.

With the United States and China at loggerheads over trade, investors should be aware of the many economic ties binding the two countries. Bank of America, U.S. Trust has released a new report that explores some of the finer points of U.S.-Sino relations and the strategic, but little understood, competitive advantages for corporate America.

The seven factors described below underscore the dynamism and competitiveness of U.S. companies and may help explain the resilience of U.S. large cap stocks despite ratcheting trade tensions between the U.S. and China.

Q2 hedge fund letters, conference, scoops etc

U.S.-China Checklist: Understanding Some...

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Members' Corner

Why obvious lies still make good propaganda

 

This is very good; it's about "firehosing", a type of propaganda, and how it works.

Why obvious lies still make good propaganda

A 2016 report described Russian propaganda as:
• high in volume
• rapid, continuous and repetitive
• having no commitment to objective reality
• lacking consistency

...

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Digital Currencies

Mania to Mania

 

Mania to Mania

Courtesy of 

“Russell rarely played the stock market and had little investing experience when he put around $120,000 into bitcoin in November 2017.”

This comes from a CNN money article, Bitcoin crash: This man lost his savings when cryptocurrencies plunged. From January 2017 through the peak in early 2018, Ethereum gained 16,915%.

Any time you have something go vertical, you just know that some peopl...



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Biotech

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

 

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

Breast cancer type 1 (BRCA1) is a human tumor suppressor gene, found in all humans. Its protein, also called by the synonym BRCA1, is responsible for repairing DNA. ibreakstock/Shutterstock.com

By Jay Shendure, University of Washington; Greg Findlay, ...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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