Tuesday, August 12, 2014

BUSINESS INSIDER IS AT IT AGAIN: here's what you need to know

Here's your daily newsgarbage:

Reformed Borker (Bork Bork Bork!) - with panty-piddlers like these, who needs bears? Quote:
One of the most remarkable and persistent features of the current bull market is a willingness – nay, a compulsion – on the part of investors to turn negative at the drop of a hat.

This is entirely to be expected given the fact that this generation has seen two back-to-back peak-to-trough S&P 500 declines of 50% since the beginning of the millennium.
Thinking of anyone in particular, Josh?

FT beyond brics - EM exports reveal split in fortunes. Apparently the EMs who manufacture are doing better than the EMs who just dig crap out of the ground. Something to keep in mind - will this moderate the EM secular bear market?

BI - junk funds just experienced a six sigma event! Oh god, it's the click-whores again, led this time by Williamsburg scenester and former zine editor Sam Ro:
High-yield bond mutual funds saw outflows total an eye-popping $7.1 billion last week.
Last week?

The week where they went up 1%, you mean?
"This is the largest HY outflow on record – a 6-sigma event when flows are scaled by mutual fund assets under management!"
You mean that $7.1 billion, which is only about 4% of 2014H1 US corporate junk bond issuance, is something to get worked up about?
Sigma is another way of saying standard deviation. And the greater the number of standard deviations, the more unlikely the event.
Great, Sam. Thanks for letting us know you write for idiots who have never taken a goddamn stats class.

I mean seriously. You need stats for engineering, technology, business, economics... even sociology students take stats. You're telling us that Business Insider writes articles for highschool dropouts and drama students.
This is not to say the outflows and price declines will end anytime soon.
Uh... Sammy? You might want to look at the chart again and see what it says.

Here, I'll mark it up for you:

Now THAT is technical analysis!


  1. Nice....how is the heat back in Toronto? everyone getting a little on edge?

    love the Sam Ro shart, just made my day!

    1. Normally we get summers where the heat goes up to the mid-30s, or mid-40s with the humidex. It has been rather cool this summer, very abnormal. The heat broke with the rain yesterday, now we're in the low 20s.

      Reminds me of one summer a few years ago where the temperature was great for hiking, but I couldn't do anything because every day we'd get pop-up thunderstorms appearing out of the countryside with no warning. This was before smartphones so you couldn't really check the radar as you hiked.

      So basically, no not hot at all, hasn't been all year.