Archives of “Subprime mortgage crisis” tag

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Dovish testimony from Powell, 3 rate cuts on the way, starting with 25bps in July

  
  Analysis
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That’s the expectation from Bank of America / Merrill Lynch for the FOMC after Fed Chair Powell’s testimony on Wednesday

Powell “delivered a dovish testimony“
  • “hinting strongly at an upcoming cut“
BoA ML:
  • expect a 25bp cut in July (31st)
  • and cuts thereafter at each of the following two meetings (September17-18 and October 29-30)
  • cumulative 75bp of easing
More from the note:
  • The Fed seems to be willing to dismiss the better data from the US and instead is focusing on the weaker global data.
  •  Indeed, when Powell was asked if the strong jobs report changed his views on cuts, he stated “no”. 

Goldman Sachs says the yen is undervalued – downside risk to 103 target

  
Analysis, Forex
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Via a Goldman Sachs note, says yen remains cheap, unlike many other safe havens

  • positive news out of the US-China meeting could weigh on yen in the near term
  • but its role as a portfolio hedge bodes will continue
Downside risks to GS’ 12-month USD/JPY target (at 103)
  • proprietary models set 95 as fair value
  • bullish yen view supported by BOJ having limited monetary policy space to ease further
  • net outflows from Japan have shifted to “cross-border direct investment from portfolio flows, and outbound foreign direct investment could pull back on global trade uncertainty”
More:
  • trade disputes
  • unsettled global markets
may lead to a choppy USD

10 Trading -Wisdom Quotes

  
  Education
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  1. Ignore hearsay and don’t let your ego get the better of you.

“I learned that an opinion isn’t worth that much. It is more important to listen to the market.”
“Most traders who fail have large egos and can’t admit that they are wrong. Even those who are willing to admit that they are wrong early in their career can’t admit it later on! Also, some traders fail because they are too worried about losing. I’m not afraid to lose. When you start being afraid to lose, you’re finished.”

Brian Gelber

  1. Timing is paramount.

“I don’t lose much on trades, because I wait for the exact right moment.”

Mark Weinstein

  1. Accept full responsibility for your actions and don’t fall prey to self-sabotage.

“Many people actually want to lose on a subconscious level.”

“The realization that you are responsible for your results is the key to successful investing. Winners know they are responsible for their results; losers think they are not.”

Dr. Van K. Tharp (more…)

Charting The Epic Collapse Of The World's Most Systemically Dangerous Bank

  
Analysis, Education
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It’s been almost 10 years in the making, but the fate of one of Europe’s most important financial institutions appears to be sealed.
After a hard-hitting sequence of scandals, poor decisions, and unfortunate events,Visual Capitalist’s Jeff Desjardins notes that Frankfurt-based Deutsche Bank shares are now down -48% on the year to $12.60, which is a record-setting low.
Even more stunning is the long-term view of the German institution’s downward spiral.
With a modest $15.8 billion in market capitalization, shares of the 147-year-old company now trade for a paltry 8% of its peak price in May 2007.

THE BEGINNING OF THE END

If the deaths of Lehman Brothers and Bear Stearns were quick and painless, the coming demise of Deutsche Bank has been long, drawn out, and painful.

In recent times, Deutsche Bank’s investment banking division has been among the largest in the world, comparable in size to Goldman Sachs, JP Morgan, Bank of America, and Citigroup. However, unlike those other names, Deutsche Bank has been walking wounded since the Financial Crisis, and the German bank has never been able to fully recover.

It’s ironic, because in 2009, the company’s CEO Josef Ackermann boldly proclaimed that Deutsche Bank had plenty of capital, and that it was weathering the crisis better than its competitors. (more…)

Life is too short

  
Analysis, Education
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The great thing about trading is that if you’re good enough at in, you’ll never have to work again.

But whether you’re working or not; making money or not; the one thing you can’t buy is time. It’s Summer and it’s the weekend, so enjoy what life has to offer.

It’s with sadness that I read about the death of John Noyce. He was a foreign exchange technical analyst at Goldman Sachs and wrote “The Charts That Matter Next Week”. He was 36 and died of cancer last week

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