What Goes Up

The dollar has been in a slump against major currencies in the last few months, and betting on more declines has become a popular trade. Wells Fargo macro strategist Zachary Griffiths discusses how the election results could interrupt or continue the trend.Mentioned in this podcast:Robinhood’s Addictive App Made Trading a Pandemic Pastime Banks Brace for ‘Big Bang’ Switch on $80 Trillion Worth of SwapsSee omnystudio.com/listener for privacy information.

The shift to commission-free trading and the stay-at-home environment of 2020 helped usher a new army of day traders into the stock and equity-options markets. How will this influential cohort affect markets now that they account for a share of volume that rivals hedge funds?Liz Ann Sonders, chief investment strategist at Charles Schwab, discusses this, the upcoming elections, and other market topics.Mentioned in this podcast:Mysterious Mega-Flows Rotate Through World’s Biggest Tech ETFDay-Trader Options Action Is Spotted Yet Again in Nasdaq SurgeSee omnystudio.com/listener for privacy information.

An antitrust report by Democratic staffers for the House of Representatives this week sent chills down the spine of investors holding shares of the major U.S. technology and internet companies that have driven the bull market. The report signals the likelihood of heightened regulatory scrutiny over these companies, especially if Democrats win the White House and both chambers of Congress in the November elections in a so-called “blue wave.” Max Gokhman, head of asset allocation at Pacific Life Fund Advisors, shares his thoughts on this and other market developments.See omnystudio.com/listener for privacy information.

A stock market that sometimes seems bulletproof in the face of adversity can make it challenging for hedge funds looking for companies to sell short in anticipation of share-price declines. Ben Axler of the activist fund Spruce Point Capital Management discusses where he’s looking for opportunities, including in special-purpose acquisition companies.Mentioned in this podcast:Blistering IPO Market Is Rekindling Dot-Com Era Froth FearsThe Tiny Activist Fund That Reaped 24% Return by Unearthing ‘Cockroaches’See omnystudio.com/listener for privacy information.

Warren Buffett has referred to the massive cash pile at his company Berkshire Hathaway Inc. as his “elephant gun,” meaning he’s always on the prowl for an opportunity to shoot large sums of money at a big acquisition or investment. While he made a few deals this year as the Covid-19 pandemic roiled markets, he hasn’t been quite as active as he was during the global financial crisis more than a decade ago.Why is that? Joining this week to discuss why is Larry Pitkowsky, co-managing partner at GoodHaven Capital Management. His GoodHaven Fund counts Berkshire Hathaway as its top holding. Pitkowsky also discusses other holdings in the fund and shares some thoughts on markets and value investing. Mentioned in this podcast:Amazon Tells Echelon Fitness to Stop Selling $500 Prime BikeCan’t-Lose Trades Falter With Inflation Expectations FlaggingSee omnystudio.com/listener for privacy information.

An explosion of trading in equity options among day-traders is suspected of helping to fuel the rally in U.S. stocks this summer. Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, joins this week’s episode of the “What Goes Up” podcast to explain what happened.Mentioned in this podcast: The Wild Summer of 2020 Turned Small Investors Into WhalesReddit's Stock Threads Become a Must-Read on Wall StreetSee omnystudio.com/listener for privacy information.

The selloff in high-flying technology stocks continued this week after a breathtaking rally over the previous five months. Is the bubbling bursting, or is this just a minor setback for the perennial darlings of the market? Seema Shah, chief strategist at Principal Global Investors in London, discusses this and other important issues for the stock market.Mentioned in this podcast:A Week Like This Was a Long Time Coming for Day-Trader Faithful Options Traders Whipped Up Stock Boom With SoftBank Buying​​​​​​​See omnystudio.com/listener for privacy information.

The U.S. stock market’s melt-up seems to have ended in spectacular fashion this week, and now many on Wall Street are turning their attention to the election in November as a potential source of risk. Nela Richardson, senior investment strategist at Edward Jones, shares her take on this week’s market action and what to expect in November.Mentioned in this podcast: Low Rates Lead Investors to Look Beyond the Classic 60/40 MixVolatility Markets Brace for Election Drama Like Never Before Mystery Solved: Days Like This Are What the VIX Warned AboutSee omnystudio.com/listener for privacy information.

Politics has become one of the most-important drivers in markets and this year’s U.S. presidential election is shaping up to be the main focus of traders and investors in all asset classes. Naufal Sanaullah, chief macro strategist at hedge fund EIA All Weather Alpha Partners, discusses how he’s thinking about the market implications of the race.Mentioned in this podcast:Volatility Markets Brace for Election Drama Like Never BeforeNotorious B.I.G.’s Plastic Crown May Fetch $300,000 at Sotheby’sKFC Suspends `It’s Finger Lickin’ Good’ Slogan Amid PandemicSee omnystudio.com/listener for privacy information.

Campbell Harvey, finance professor at Duke University and a senior adviser at Research Affiliates, is well known for his research on the yield curve as a recession indicator. While no one could have possibly predicted the cause of this recession – a global pandemic – it’s still true that an inverted yield curve once again predicted an economic downturn. Harvey joins the latest episode of “What Goes Up” to discuss what the bond market is signaling now, along with his new paper on gold.Mentioned in this podcast:Gold, the Golden Constant, COVID-19, 'Massive Passives' and Déjà VuFed Minutes Show FOMC Backs Away From September Guidance ShiftSee omnystudio.com/listener for privacy information.