Bitcoin price action shows hedgies may be jumping in

There is no way you can say Wall Street is not piling into bitcoin the last two days.

The move from roughly $11,250 to $15,800 (see chart below) cannot be attributed to buy and hold crypto enthusiasts buying an additional 0.0002 bitcoin. Continue reading

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Markets' year-end sale

There are 3.5 days left in the 2015 trading year and this is how the major exchanges look Monday pre-open.

  • Dow -271, -1.5%. Last 6 months is -2.2%
  • S&P +2, +0.01%. Last 6 months is -1.9%
  •  Nasdaq +312, +6.6%. Last 6 months is -0.6%
  • $/€ +10.1%. Last 6 months is 1.8%
  • US 10-year note. Had a low yield of 1.65% and a high of 2.49%. It opens Monday at 2.24.

Nasdaq is the outlier due to “hedge funds” piling into the FANG trade. I don’t understand how someone would pay 2% and 20% to a fund manager who buys Facebook, Apple, Google and Netflix.

That’s not an alternative investment or a hedge against a market downturn. That’s what I have in my 401(k). The 2&20 I referenced earlier are 2% management fees and 20% of the profit on the fund.

Those profits for hedgies this year are few and far between as pharma, bio-tech and solar are all beat up sectors.

Continued dollar strength will be a headwind for stocks as the yield on bonds will also get lower for the foreseeable future. If you look at the last 6 months you see the global slowdown’s effect on all markets.

Oil will be down until the end of the year due to tax loss selling on crude as the commodity has cratered over the last year. Book those losses not to get the capital loss.