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Opening Bell: 11.4.16

Pensions spring for sex shops and sewage; election triggers Wall Street bros; Paulson's hedge fund reeling on pharma bets; RedtTube's election prediction; and more.
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S&P 500 Eyes Longest Losing Streak Since 1980 (FastFT)


After eight straight days of declines. what will it take today to stop Wall Street’s “Trump dump”, as persistent US election jitters threaten to hand the S&P 500 its longest losing streak in more than three decades? Even the highly influential non-farm payrolls number, and its implications for a possible rate rise from the Federal Reserve, may not be enough to divert attention away Tuesday’s big vote.

Big Hit on Drug Stocks Caps $26 Billion Decline for John Paulson (WSJ)

John Paulson’s hedge-fund firm, Paulson & Co., is suffering painful losses this year, extending a period of uneven performance that has left the firm managing about $12 billion, down from $38 billion in 2011. Behind the recent difficulties: A big, faulty bet on pharmaceutical companies, as well as excessive caution about the broader market, according to people close to the matter.

Sex Shops, Bingo and Sewage Define New Era of Pension Portfolios (BBG)

In an era of record low interest rates and aging populations, the most risk averse of institutional investors are now buying assets that would have once seemed inconceivable. With much of their bread and butter -- government bonds -- yielding less than zero, the pursuit of a stable income has turned Europe’s pension funds into anything from landlords of Dutch sex shops and British bingo halls to investors in lotteries in Gibraltar.

GoPro and Fitbit May Have Already Hit Wall Street Peak

Wearables have gone out of fashion on Wall Street. Shares of GoPro and Fitbit got slammed by steep selloffs Thursday after the companies forecasted surprisingly weak holiday sales on top of disappointing quarterly results. At GoPro, the company said late Thursday its steeper-than-expected loss and limp outlook were caused by production glitches that briefly hit its new Hero5 Black action camera and the Karma, a foldable Drone that sells for $799.

Authorities Break Up Active Management Cell (Reformed Broker)

(Boston, MA) – Local police, working closely with Federal pension fund authorities, arrested three men on Thursday morning while breaking up an active management cell that was on the verge of deviating from the index. Based on early reports from S&P Dow Jones Indices, it could have been the costliest attack on American soil in months.

The Barred Brokers in Our Midst (WSJ)

Matthew John Davis sells annuities as an investment adviser in California. Two years ago, he was barred from the brokerage industry after he declined to respond to allegations that he forged documents and falsified clients’ account values. Mr. Davis is one of dozens of former brokers who were permanently or temporarily barred by regulators from working at a brokerage firm but who have begun new careers as investment advisers. The transition is legal, but the nuances between the professions of broker and investment adviser can be lost on mom-and-pop investors, experts say, potentially exposing them to bad actors.

This Election Shines a New Light on Wall Street’s Bro Culture (BBG)

It’s never been easy to be a woman on Wall Street. But for many, this polarizing U.S. election season has pulled at old wounds -- and in some cases opened new ones -- as the political vitriol has spilled into the workplace. The issue transcends personal politics. Republicans and Democrats alike say the candidacies of Donald Trump and Hillary Clinton have prompted a new level of soul-searching about the bro culture of American finance. And whoever wins next Tuesday, the questions aren’t going away.

Deutsche Bank's Chief US Economist Thinks The Economy Has A Lot Of Problems And Very Few Solutions (BI)

While they do not suggest a recession is necessarily imminent, the data do suggest the business cycle is certainly a little long in the tooth, certainly it's not in the early stages. So therefore we need to be more aware of possible evidence that demand is weakening and the economy is even more fragile than we thought. But at the moment we're still growing, it's just a serious flashing yellow sign for me.

Citi Predicts Possible 5% Drop For S&P 500 If Trump Wins, Warns On Recession (CNBC)

A Donald Trump win could spark an immediate sell-off of up to 5 percent for the S&P 500, according to analysts at Citi, who also warn on slower growth or even recession for the U.S. A survey run in September by the U.S. investment bank showed Wall Street strongly believes Hillary Clinton is set to clinch victory in next week's vote but the poor performance of U.S. equity markets in the wake of last Friday's news of the latest FBI probe into the Democratic candidate's emails, shows concerns of a Trump win are mounting.

Donald Trump’s Income Isn’t Always What He Says It Is, Records Suggest (NYT)

Trump appears to have used a provision in federal ethics laws that allows business owners to list gross revenue, as opposed to net income after expenses, on their disclosure forms. But he does not seem to have completely acknowledged that choice. Rather, he has suggested that the figures on the form represent money in his pocket.

RedTube Predicts Trump to Win Presidency

Election day is coming up, the most suspenseful time every 4 years. RedTube conducted a 3 week survey asking our American users: Who will you vote for? We received 1 million responses across all States and we got our answer, Trump is predicted to win with 52.1% of the votes!


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Opening Bell: 12.13.16

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"Political pressure" at the Fed; Chiasson back in business; Buffet bounce for airline stocks; “penile strangulation”; and more.

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Big fine for JPMorgan; Citi trader pounded the Pound; nude cop hijinks; and more.

By EU2017EE Estonian Presidency (Theresa May) [CC BY 2.0], via Wikimedia Commons

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