Wealth
Confiscation for the Digital Age: the New “Cash Tax” – (www.wolfstreet.com) The
government and the mainstream press won’t dare call it a tax. But that’s
exactly what it is. A negative interest rate policy is a tax. Any
time you hear a politician, central banker, or news anchor say “negative
interest rates,” just think “TAX.” Think “TAX ON MY CASH.” Negative
interest rates are going to result in financial disaster that will wipe
out many people. But you don’t have to be one of them. I’ll explain
how you can sidestep this disaster—and even make a lot of money as a result of
it—in a moment. But let’s quickly cover one more thing about negative interest
rates… If the government makes it unattractive for you to keep cash in the
bank, you can pull cash out of the bank. You can simply store it in a safe or
under the mattress. Politicians know this. That’s why they’ve created
another dangerous policy that works hand-in-glove with negative interest rates.
High Rollers Are Flocking to ‘Hotel HYG’ in
Record Numbers – (www.bloomberg.com)
The guest list of visitors to the world’s
largest junk bond exchange-traded fund (ETF) is pretty impressive. When
the iShares iBoxx $ High Yield Corporate Bond ETF–better known as HYG–began
trading more than a decade ago, it was mostly thought of as a buy-and-hold
product used by financial advisers and retail investors. Yet more and more big
institutional investors are using it like a hotel—checking in and out in
increasingly large sizes with an average stay of less than a month. While some
of those flows were linked to risk-off sentiment hitting the overall market, most appear
to have been institutional portfolio maneuvering. Either way, it is all part of an increase in
the size—and the volatility—of weekly flows, as seen in the chart below.
Another
Condo Bubble Bites the Dust - (www.wolfstreet.com) In Lower Manhattan, 31 towers with over 5,000
apartments are sprouting up. They’re not exactly in the “affordable” category.
The median price for condos – half sell for more, half sell for less – has
soared 77% since 2013, to $2.43 million, while the median price in the overall
Manhattan condo market has shot up “only” 54% to $1.84 million. These are
stunning numbers, even for those of us who’ve become inured to stunning numbers
by being exposed on a daily basis to the craziness in San Francisco. “Lower Manhattan is getting a facelift” —
that’s how Frances Katzen, of Douglas Elliman Real Estate, explained the
phenomenon to the Financial Times. The FT adds some color:
China steel, iron ore futures dive as demand
worries batter commodities - (www.reuters.com) Chinese
commodities dived on Monday, led by 6 percent falls in steel and iron ore
futures, as deepening worries about China's demand extended a fortnight of
sharp drops and false rebounds in the country's market for industrial metals. Speculative
funds rushed into China's commodities futures last month, betting the country's
economy was bottoming. The buying frenzy alarmed domestic exchanges and
regulators fearing a bubble could be forming as volumes and prices soared. To
limit speculation on futures from steel to coal, the country's three commodity
exchanges have taken aggressive measures, including raising trading margins and
transaction fees, and widening daily movement limits. The big market swings and
the response of authorities have raised concerns about the risk of contagion
for global markets, particularly after last year's stock boom and bust.
Gap
shares plunge, analyst says company in big trouble - (www.cnbc.com) Gap is in big trouble, as the once-mighty
retailer has lost its way, Deutsche Bank retail analyst Paul Trussel said
Tuesday. "Gap used to be a core, basic, apparel retailer with low prices
and great product for the family. I think there's other retailers that frankly
have taken that place within the retail sector," he told CNBC's "Squawk on the Street." Trussel added that retailers like
H&M and Ross Stores have taken considerable market share from
Gap. "This is all happening while the consumer has been very willing to
buy more and more on their mobile device," he said. Gap shares fell more
than 11 percent Tuesday, to its lowest levels since 2012, on the heels of its
first-quarter results warning. The company said Monday first-quarter revenue
and profits would fall short of Wall Street's
estimates,
and issued a forecast for the period that reflected the slower traffic it saw
in its stores, which led to more discounting.
Global Stocks Fluctuate as Crude, Raw-Material
Prices Retreat - (www.bloomberg.com)
Emerging Markets Extend Declines as China Trade Data Disappoint - (www.bloomberg.com)
China stocks plunge again as hopes for economic recovery fade - (www.reuters.com)
China steel, iron ore futures dive as demand worries batter commodities - (www.reuters.com)
European Stock Gains Defy China Data That Hurt Metals; Oil Rises - (www.bloomberg.com)
The Cold, Hard Facts Raining on China's Commodity Parade - (www.bloomberg.com)
Emerging Markets Extend Declines as China Trade Data Disappoint - (www.bloomberg.com)
China stocks plunge again as hopes for economic recovery fade - (www.reuters.com)
China steel, iron ore futures dive as demand worries batter commodities - (www.reuters.com)
European Stock Gains Defy China Data That Hurt Metals; Oil Rises - (www.bloomberg.com)
The Cold, Hard Facts Raining on China's Commodity Parade - (www.bloomberg.com)
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