TraderMark's  Instablog

One must ask why S&P futures are not up 10% as this might assure even more emergency measures and free money for the entire world...

http://www.fundmymutualfund.com/2009/11/dubai-friday.html

• JPMorgan Chase & Co. and Pacific Investment Management Co. are inundated with money from individuals attempting to mimic the performance of hedge funds speculating that the stock-market rally is over.
• So-called bear-market and long-short mutual funds, designed to protect against falling stock prices, attracted a record $10 billion this year through October, more than double the previous high in 2006, according to Morningstar Inc.
• Asset managers have opened 19 long-short funds, the most in one year.

 

 

• Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said the “systemic risk” of new asset bubbles is rising with the Federal Reserve keeping interest rates at record lows. 
• “The Fed is trying to reflate the U.S. economy,” Gross wrote in his December investment outlook posted on the Newport Beach, California-based company’s Web site today. “The process of reflation involves lowering short-term rates to such a painful level that investors are forced or enticed to term out their short-term cash into higher-risk bonds or stocks.” 
• “Raise interest rates with 15 million jobless and 25 million part-time working Americans?” wrote Gross, co-founder and co-chief investment officer of Pimco. “All because gold is above $1,100? You must be joking or smoking -- something.” 
• The “heavy lifting” will likely be done first by other central banks such as those in Australia and Norway that have already begun to increase interest rates, Gross wrote.