Brexit Drama Reaches Fever Pitch Following Death Of British MP

Even Jim Cramer admits it: global macro is in the driver’s seat. On Friday morning the boisterous Mad Money host bemoaned the fact that no one seems to care about anything but Brexit and geopolitics. “I’m probably the only person in the world reading the Kroger quarter,” Cramer lamented. “It’s only the biggest grocery store…

LendingClub “Solves” Its Problems: Will Buy Its Own Loans

Investors just aren’t going to learn when it comes to LendingClub. To be clear, this stock matters for two reasons. First, it’s a classic example of a “story” stock gone horribly wrong and as is usually the case, some investors are going to believe the story until they finally just go down with the ship.…

Brexit In The Driver’s Seat For Markets As “Leave” Odds Rise

“In any event, watch the BoJ tonight. USD/JPY sunk to 20-month low at 105.44 before bouncing following the Fed decision. If Japan doesn’t play this exactly right, you could see further yen strength - and we’ve seen what that does to US stocks.” That’s what we said on Thursday afternoon after the Fed struck an…

Fed Fumbles, Stocks Fall For Fifth Straight Session Ahead Of BoJ

It’s safe to say that didn’t go precisely as planned. Stocks closed in the red Wednesday despite a decidedly dovish Fed statement, and frankly it’s hard to know exactly what to make of that. To be sure, the outcome was expected, but even Esther George was on board as the Kansas City Fed chief withdrew…

Gundlach Slams “Zombie Fed,” Says World Is “Losing Control”

Overseas markets got a bit of a breather Wednesday from the safe haven bid as everyone remained stuck in suspended animation ahead of the Fed decision. Come to think of it, that’s ironic because the Fed itself seems to be frozen. We’d be remiss if we didn’t talk about central banks today and tomorrow. As…

Here’s Why US Equity Investors Should Care About China’s Bad Loan Problem

With all eyes on Brexit, the market seems to have temporarily forgotten about the biggest risk factor of all: China. Understanding the country’s capital markets, FX regime, and banking system can be a daunting task, but it’s worth the time to do a bit of research because it truly is important to comprehend what’s going…

Fear Builds Ahead Of Fed, Brexit Vote As German 10-Year Goes Sub-Zero

It’s probably safe to say that there’s now a palpable sense of anxiety hanging over global markets. We previewed the flight to safety here yesterday, noting that Brexit risk was driving investors into supposedly “riskless” assets and haven currencies. Currencies like the yen, which is trying pretty hard to press towards 100, creating a rather…

This May Not End Well: Energy Junk Bonds Stage Comeback With Oil At $50

Last month, Goldman put the exclamation point on a relentless move higher for crude prices when the bank wrote the following in a widely circulated note: “The physical rebalancing of the oil market has finally started. While supply and demand surprised to the upside commensurately in 1Q16, leaving the market oversupplied by 1.4 mb/d, we…

Brexit Jitters Drive More “Yen”-Sanity: Lessons From The Bloodbath In Asia

Ok, so Microsoft bought LinkedIn. If you picked up some LNKD back in February after the disastrous Q4 call, good for you. Now that we got that out of the way, let’s talk about the trends driving markets on Monday because understanding the ebb and flow here is going to be critical over the next…

Brace Yourselves, Volatility Draws Nigh, PIMCO Warns

One of the key themes I try to communicate to investors is that in the current environment, you simply can’t understand markets if you don’t understand geopolitics. This has always been the case to a certain extent, but it’s arguably more true today than ever. The Saudis, for instance, are wielding their sway over oil…