Monday, February 20, 2017

Greed Is Good. But Bailouts Are Much Better

Artificially intelligent billunaires Bill Gates and Mark Cuban are going to be replaced by robots. Since they don't add any value, and we can't afford to bail them out again...

We are now witnessing the end of the hedge fund asset class...

Is a psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome. Group members try to minimize conflict and reach a consensus decision without critical evaluation of alternative viewpoints by actively suppressing dissenting viewpoints, and by isolating themselves from outside influences. Groupthink requires individuals to avoid raising controversial issues or alternative solutions, and there is loss of individual creativity, uniqueness and independent thinking. The dysfunctional group dynamics of the "ingroup" produces an "illusion of invulnerability" 

Crude oil net speculative positions new record high as of Friday:

Comparisons to bullish positioning circa 2014 have been deemed irrelevant by Raoul Pal et al, for bull-shite reasons that made my eyes glaze over. Therefore to be 100% apples-to-apples, hark back to 2015 when Oil was at these exact same levels. Denialism problem solved...

In summary, U.S. oil inventories record high. U.S. Gasoline inventories record high. Hedge funds record long.

Oil implied (upper pane) and realized volatility (lower pane) multi-year lows:

Trump's regulatory advisor is corporate raider Carl Icahn. Am I the only one who thinks that's full retard?

Fortunately he's imploding again...

He currently possesses 29.26 million shares of Hertz - a 35.27% stake.

You see the problem is not just Hertz



Hedge funds underperforming

Multi-strategy hedge fund ETF / S&P: