Read about Paul singer in Wikipedia! He is the toughest person and a lawyer, challenging countries and other firms at times.
Great. So now we have a sex recession on top of everything else.
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Goldman Says Mom-and-Popâs Stock Picks Are Trouncing Wall Street
Stocks preferred by retail investors are handily beating those liked by hedge funds and mutual funds, according to Goldman Sachs Group Inc.
A portfolio of stocks popular among individuals has surged by 61% since the bear market trough compared with a gain of 45% for both hedge fund and mutual fund favorites and a 36% rise in the S&P 500 Index, strategists led by David Kostin wrote in a note June 12. And investors should consider value shares, they said.
âThe narrative of Main Street weakness versus Wall Street asset inflation is misleading,â the strategists said. âThe surge in retail trading activity has amplified the market rotation toward cyclicals and value stocks.â
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Rotating back to WFH stocks.
This goes into how Bezos talks about how leaders are right a lot. Itâs not because they are right at first. Itâs because they change their mind as new info is available. Of course, many people would label those people and indecisive or flip-flopping, since they appear to not stand my their previous views. What the best are doing is acknowledging new information and updating based on it.
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So what?
.
Donât fight the Fed 
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Is that the real message?
Everybody says so.
The only message that matters.
Itâs been known for a long time that hedge funds underperform the average returns, as measured by indices like S&P. So mathematically it means people other than hedge funds over perform.
Frankly I donât know what it means. I know what it means on the surface, but if I peel it back it means?
Who are they looking out for? You/me?
If you want to know the real details from a news paper or TV, you will not get it.
If I update, no one agree here.
The reason is market goes up or down at the will of market makers/big banks etc, news/TV/media will assign reason for UPs and DOWNs.
Yesterday evening pre-market and today morning pre-market, news/media assigned reason for -700 down points.
When the market turned up side, the same news/media assigned different reasons for up 150 points.
Take the news/media reasons with grain of salt. They are behind circulations.
The hedge fund industry changed due to regulation. It used to be $300-500M was enough to run a fund. Now you need billions just so the 2% fee covers the cost of regulation compliance. The problem is once youâre that big itâs more difficult to beat the market. You canât hold a meaningful position in smaller companies, since buying/selling the position moves the value of it too much. They canât even take life options positions, since those would distort pricing. Now they all try to trade in and out of the same Mega cap stocks as their largest positions. Since SPY is market cap weighted, Mega caps are more likely to perform closer to the index itself.
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Now, with this statement, think this way. If some market makers (big banks, funds) wants to shed multi-billion dollars of SPX (Selling or shorting the market), they secretly buy 1/100th of position as short term (15 days or less) SPY puts to lock the value(VIX increases) , then shed entire billions of SPX (Selling or shorting) which makes 7% fall last week.
They use SPX puts to avoid price distortion. We can infer how market goes by watching the VIX.
Last two days, feared retailers are selling, market makers are reversing, VIX comes down and S&P going up.
I donât think retail investors are moving in and out on a daily or even weekly basis.
SPY does $18B/day of volume. That doesnât count VOO, and all the other copies. I doubt anyone one person has enough SPY that theyâd make the entire index fall by selling.
The bigger movements are sector rotations driven by mutual funds and their sector allocation rules. That pushes down winners and lifts up losers. Itâs great to buy winners when sector rotation knocks them down.
SPY, VOO or SPX are synonymous (did not read full disclosures how they maintain with indexes), but VIX is SPX options. When index changes, the related ETFs will also adjust (depending on this model) by end of the day.
Mostly retail investors, who believes news/media stories etc, will normally sell in panic while big companies/funds will have analysts or system to re-position methodically (no panic selling). Seasoned investors normally stay on course.
The bigger movements are sector rotations driven by mutual funds and their sector allocation rules.
No one will know ahead of it unless we know similar sector indexes and its puts/calls. These sector rotations are happening, and news media publicizes after knowing the result (sector indexes).
News/Media (and related analysts) never know anything ahead, just like us, and they just write nice stories after the fact.
Based on my past experience, when VIX moves up 3 or 4 days consecutively (inference, but not a rule), sure chances of SPX drop as some big company (companies) are going to shed S&P. When such shedding happens widely, VIX keeps on going to 80s, while stocks are diving down.
This is the main reason, drops are sharper than recovery. Market makers hold very short term SPX puts.
They silently move VIX up when markets are up. This will come and go few days (silently).
Bullish investors wonât notice this slient VIX movement as News/Media will be gloating over the bullish trends⌠!
BTW: This is not a financial or stock advice, just to make everyone aware of situations.
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Bridgewaterâs Assets Shrank 15% in Virus-Fueled Trading Slump
- Decline at Dalioâs hedge fund giant mostly reflects returns
Bridgewater Associates, the hedge fund giant founded by Ray Dalio, suffered a 15% drop in assets under management during March and April in the wake of heavy losses at its flagship trading strategy.
Assets fell to $138 billion at the end of April from $163 billion at the end of February, according to a May 29 filingposted on the U.S. Securities and Exchangeâs website. Almost all of the decline reflects performance-related losses rather than client withdrawals, said a person with knowledge of the matter who requested anonymity because those details are confidential.