Most Popular Bet: Long dollar position

market concessions for We haven’t seen yet, the declines this year are pretty severe (the tech Nasdaq lost more than 30 percent, and some stocks lost 70 percent and more), but they’re far from dramatic. Some indications are that it is very bad croak Wall Street is no longer in trouble. In the week ending October 12, 20.4 percent of private investors expected stock prices to rise in the next six months, according to data from the American Retail Investors Association. For the 47th consecutive time, the share of optimistic investors was below the historical average (38 percent).

to buy dollars andBrieflyEuropean stocks
The mood among American managers is similar, as Bank of America points out in a monthly survey, the vast majority of whom are for The next 12 months expect a recession and a decline in corporate profits, the share of liquidity attitudes Managers increased it to 6.3 percent, the highest since April 2001. Everything in style Money is king – « Cash he is king« . It is known which money or Currency: Still the most popular investment strategy islong dollar‘, which is long attitudes On the US dollar (although 68 percent of respondents say the dollar is currently highly valued), it is followed by selling attitudes (in which investors are betting on further declines) on European stocks. As the most likely source of the next crisis credit The event, professional investors (more than 350 of them took part in the survey) quoted European government bond markets.

More confidence in the markets with Jeremy Hunt Stock markets are just above the level this week, and one of the reasons is more encouraging events in Great Britain, where Jeremy Hunt has been appointed for The new finance minister and, above all, farewell to the announced tax incentives, calmed the situation in the bond markets. The British government has certainly learned a strong lesson that market confidence should not be played with, as the situation has suddenly become dire. The required yield on British 30-year bonds even exceeded five percent, after being half lower than it was in August. Sharp drops in bond prices have pushed many British pension funds to the brink of collapse. They regulate liquidity with LDS strategy (responsible–move it investments), which work perfectly in an environment with very low interest rates, but when the story turns quickly, the problems suddenly become so great that the Bank of England had to come to the rescue.

Solomon in a similar style to Damon
Last week saw the start of the third-quarter earnings season in the US. Banks come in first, mostly due to higher interest margins, as they made more profits than expected. This also applies for Investment bank Goldman Sachs. Profits are already down for 43 percent, to $3.07 billion ($8.25 per share), but that was well ahead of expectations. Revenue decreased due to a significant drop in first public sales or IPOs for 12 percent, to just under $12 billion. At the same time, David Solomon, Goldman’s first man, warned everyone in the risky business that more and more caution was necessary, because there was more on the horizon. volatility, but the United States is likely to face a recession as well. Jamie Dimon of JPMorgan Chase had a similar opinion a few days ago.