Dailiy Reading – Monday, March 7, 2011

FT BeyondBRICs: Fund file: the ETF dynamic

In the week to last Wednesday, EM equity funds reported net outflows of $2.5bn, up on $1.9bn the previous seven days. That took total redemptions t0 $23bn since outflows started in late January, according to research company EPFR.

While it is hard to determine the exact fate of emerging markets ETFs, small pieces of the picture are visible.

FT Alphaville: This is not normal ECB tightening

We would counsel attention to the middle chart. As if millions of Euribor-linked mortgages suddenly cried out in terror, and were suddenly silenced…

FT Alphaville: Moodys downgrades Greece to B1 from Ba1

Moody’s has downgraded Greece to B1 from Ba1 on Monday, a move which follows Greek five-year credit default swaps hitting 1049 basis points last Friday.

FT Alphaville: Shoot the messenger

Now, ask yourselves — if this government is apt to shoot messengers so readily, what is it eventually going to do to investors?

FT Alphaville: A stress test mugged by reality

The thing you want from a bank stress test is for the ‘stress’ to be much tougher than anything that could really happen in reality. A good kitchen-sinking, in other words.

By that standard, European stress-testing is in the toilet.

FT Alphaville: In the midst of a permanent oil-equity correlation breakdown?

Harry Tchilinguirian at BNP Paribas observes the curious breakdown in correlation between oil and equities of late…

FT BeyondBRICs: Oil: another turn of the screw

With Libya lurching closer towards civil war, the markets are getting more and more nervous – not least the oil market.

The Big Picture: Change in Ratings (or, Charlie Sheen Goes to Wall St)

We have decided to change our stock ranking to reflect current sensibilities more closely.

Rankings formerly known as “Buy” “Neutral” “Sell” and “Sell Short” have been given more descriptive terms. Buy is now WINNING, Neutral has been changed to GODDESSES, Sell is TURD and Sell Short is AT WAR.

Also please be aware that our long short portfolio has been renamed TIGER BLOOD TRADING.

Please make a note of this.

Slope of Hope: Paralyzed with Fear

This market has done a real number of my brain. When I look at QQQQ, for example, it is screaming, yelling, and proclaming that it should be shorted to pieces. It is on its knees, begging me to sell my house and put all the cash into QQQQ puts. It has a sword pointed at its gut, and a countdown timer behind it is down to 3 seconds.

Abnormal Returns: The professionalization of the financial blogosphere

or alternatively titled: “The blogification of the mainstream financial media.”



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