Has Liquidity Risk in the Treasury and Equity Markets Increased?

Tobias Adrian, Michael Fleming, Daniel Stackman, and Erik Vogt Third in a six-part series Market participants have argued that market liquidity has deteriorated since the financial crisis. However, inspection of common metrics such as bid-ask spreads, market depth, and price impact do not show pronounced reductions in liquidity compared with precrisis levels. In this post, we argue that recent changes in liquidity conditions may best be described in terms of heightened liquidity risk, as opposed Read more […]


J.P Morgan is urging investors to sell stocks on any bounce

(Sue Chang)  J.P. Morgan Chase has turned its back on the stock market: For the first time in seven years, the investment bank is urging investors to sell stocks on any bounce. “Our view is that the risk-reward for equities has worsened materially. In contrast to the past seven years, when we advocated using the dips as buying opportunities, we believe the regime has transitioned to one of selling any rally,” Mislav Matejka, an equity strategist at J.P. Morgan, said in a report. Read more […]


Chinese stock market halted for second time in week as markets plunge soon after open

BEIJING, China – China halted stock trading Thursday, its second daylong trading suspension this week, after prices plunged in the latest spasm of investor panic on its volatile markets. Chinese markets have lurched up and down as regulators gradually withdraw emergency measures imposed after the main stock index plunged in June following an explosive rise. A similar price plunge Monday triggered a sell-off on Wall Street and other global markets. On Thursday, trading was suspended after a Read more […]


The Best Small-Cap Dividend Stocks for 2016

Assuming the Federal Reserve keeps its planned path of raising interest rates further in 2016, it should push the U.S. dollar even higher relative to other currencies. A strong dollar is bad for multinational corporations, but it’s great for companies that operate almost exclusively in the U.S. The companies that tend to generate most of their money from within the U.S. are small-cap stocks. However, small caps can be a bit more volatile than large caps. A great way to reduce some of this volatility Read more […]


Sunedison Inc Short Interest Reaches All Time High

Sunedison Inc. (NYSE:SUNE) investors are still not convinced over positive market fundamentals surrounding the solar industry. This can be judged by the December 15 short interest data released by the Financial Industry Regulatory Authority (FINRA) recently. The short interest for the company touched its all-time high which clearly indicates overwhelming negative sentiments of investors. Latest Short Interest Short interest for the solar major clocked in at 123.06 million shares, rising from its Read more […]


Expect lower returns, bigger stock market swings in 2016

NEW YORK, N.Y. – Investing is becoming more of a grind. Expect it to stay that way. Analysts, mutual-fund managers and other forecasters are telling investors to expect lower returns from stocks and bonds in 2016 than in past years. They’re also predicting more severe swings in prices. Remember that 10 per cent drop for stocks that freaked investors out in August? It likely won’t take another four years for the next one. The good news is that few economists are predicting a recession Read more […]