According to Bloomberg,
Value remains in the U.S. stock market even after the Standard & Poor’s 500 Index (SPX) surged 25 percent this year to a record, according to Abby Joseph Cohen, a senior investment strategist at Goldman Sachs Group Inc.
Price-earnings ratios are lower now than the last time stocks were near these levels, Cohen said in a Bloomberg Radio interview with Tom Keene today. Janet Yellen is one of the finest policy analysts in the U.S. and deserves to be confirmed as the next chairman of the Federal Reserve, said Cohen. She forecasts the S&P 500 will reach 1,900 by the end of 2014, a 6.6 percent gain from today’s close.
New York Stock Exchange (Bloomberg)
“Companies right now are increasingly enthusiastic about the dynamism in the economy,” said Cohen. “There’s value in the market right now. The U.S. economy will likely grow faster next year.”
The S&P 500 today gained 0.8 percent to a record 1,782 in New York, surpassing a previous high set on Oct. 29 and heading for the steepest annual rally in a decade. Cohen’s forecast for the gauge to reach 1,900 by the end of 2014 matches the median estimate in a Bloomberg news survey of strategists this month.
Gains in stocks have come as the Fed maintained its unprecedented stimulus. Yellen, nominated to be the next Fed chairman, said today that the economy and labor market are performing “far short of their potential” and must improve before the central bank can begin reducing its $85 billion in monthly asset purchases. The remarks are from testimony prepared for Yellen’s nomination hearing tomorrow before the Senate Banking Committee.
Posted in Commodities, Derivatives, Goldman Sachs, Hedge Funds, Investment Banking
Tagged Abby Joseph Cohen, Chairman of the Federal Reserve, Cohen, Goldman Sachs, Janet Yellen, New York, Tom Keene, United States Senate Committee on Banking Housing and Urban Affairs
Hedge Funds Raise Gold Bets as Goldman Sees Decline: Commodities
Hedge funds raised wagers on a gold rally as speculation that the Federal Reserve will hold off on curbing stimulus drove prices toward the biggest gain in 18 months. Goldman Sachs Group Inc. expects the rally to reverse.
Money managers increased their net-long position by 26 percent to 70,067 futures and options as of July 23, U.S. Commodity Futures Trading Commission data show. The fourth consecutive weekly gain is the longest streak since October. Bullish wagers across 18 U.S.-traded commodities gained 7.4 percent to 615,140. Investors more than doubled bets on lower corn prices to a record net-short holding.
Gold futures rose 8.6 percent in July, heading for the largest monthly gain since January 2012, as Fed Chairman Ben S. Bernanke damped speculation that a cut in bond purchases is imminent. The metal remains in a bear market reached in April and is heading for the first annual loss in 13 years after some investors lost faith in bullion as a store of value. Goldman said July 22 that prices are likely to decline.
Posted in Commodities, Finance, Hedge Funds, Investment Banking, Opinion
Tagged Ben Bernanke, Chairman of the Federal Reserve, Commodity Futures Trading Commission, Federal Reserve System, Goldman Sachs, Long (finance), Market trend, US Commodity Futures Trading Commission
Hedge funds bet on price rebound after a dismal Q2
NEW YORK: Hedge funds are betting on a big commodity price rebound after a dismal second quarter, with trade data showing bets for higher prices at a near six-month peak after the US Federal Reserve softened its stance on tapering its monetary stimulus.
Wagers on US crude oil are already at record highs, the weekly data from the US Commodity Futures Trading Commission(CFTC) showed. Bets are also growing for a rebound in gold after its price tumbled 23% in the second quarter. Fed Chairman Ben Bernanke, addressing Congress over two days this week, said the central bank’s stimulus-tapering plans were not set in stone and depended on the strength of the economy. He had previously signalled that the Fed’s $85 billion in monthly bond purchases would be scaled back later this year and ended altogether in 2014.
Posted in Equity Markets, Finance, Hedge Funds, Opinion
Tagged Ben Bernanke, Chairman of the Federal Reserve, commodity, Commodity Futures Trading Commission, Fed, Federal Reserve System, Hedge Funds, New York City, United States
Hedge funds hit by June sell-off even as many still boast 2013 gains
(Reuters) – Sharp market sell-offs in June tripped up many veterans in the $2.25 trillion hedge fund industry with big name managers including Daniel Loeb, Barry Rosenstein, David Einhorn and Leon Cooperman nursing losses for the month.
Many funds were caught off guard by the deep market sell-off triggered by Fed Chairman Ben Bernanke’s comments that the central bank may consider tapering its easy money policies, including billions a month in bond purchases, by year-end.
The losses took a bite out of solid year-to-date gains among many hedge funds that had been fueled by a strong stock market rally at the start of the year coupled with bets that Japan’s economy will finally recover.
Posted in Events, Finance, Hedge Funds, Opinion
Tagged Ben Bernanke, Central Bank, Chairman of the Federal Reserve, Daniel Loeb, David Einhorn, hedge fund, Leon G. Cooperman, Reuters
Kirk’s Cantab Hedge Fund Said to Drop 14% in June Selloff
Cantab Capital Partners LLP, a hedge-fund firm partly owned by Goldman Sachs Group Inc., has lost 14 percent in its main fund this month as bonds and currencies fell, two people familiar with the performance said.
The $4.5 billion fund, based in Cambridge, England, dropped 19 percent for the year through June 21, said the people, who asked not to be named because the firm is private. Cantab, founded in 2006 by Ewan Kirk, a former Goldman Sachs partner, has been hurt in recent days as markets tumbled after Federal Reserve Chairman Ben S. Bernanke said on June 19 that the U.S. central bank may start reducing fixed-income purchases that have helped fuel a global rally in stocks and bonds.
Posted in Events, Finance, Hedge Funds, Investment Banking
Tagged Ben Bernanke, Cambridge, Cantab, Central Bank, Chairman of the Federal Reserve, Goldman Sachs, Goldman Sachs Group, hedge fund