Markets News Stocks 

‘Investable’ cash, the fuel for the stock market, drops to a 20-year low

“The last time investors held as little cash was in December 2017 (also 13%), and the last time investors held less cash (12%) was in December 1999” writes Simon Maierhofer for marketwatch.com. Investable cash is like wood: fuel.History suggests that the lack of available cash is similar to a car’s “low fuel” warning light.Once a month, the American Association of Individual Investors (AAII) polls members on their current holdings among five asset categories: stock funds, stocks, bond funds, bonds, cash.It takes wood to keep a fire burning, and it takes…

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Markets News Stocks 

Investors are hoarding their biggest piles of cash since the financial crisis — and Bank of America has a surprising take on what that means for the market’s future

“In February, fund managers reported the smallest overweight in equities since September 2016” writes Akin Oyedele for businessinsider.com. His conclusion is derived from the fund manager survey’s “cash rule.”. The BAML survey included fund managers who oversee a combined $515 billion in assets.According to Bank of America Merrill Lynch’s fund manager survey for February, the rotation into cash lifted traders’ overweight position to its highest level since the Great Recession in January 2009.After all, more cash means that investors have more dry powder to deploy when they spot an attractive…

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News 

Players who appeal for VAR to be used must be booked, warns Uefa’s head of refereeing

“Players who signal with their hands for interventions by the video assistant referee (VAR) must be booked, Uefa had warned, ahead of the technology’s debut in the Champions League next week” writes Sports News Correspondent for telegraph.co.uk. He said players should not disrupt the referee by appealing for VAR with the hand signal if they disagree with a decision. Source: telegraph.co.uk

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GBP News 

Pound falls after weak PMI prints signal flat-line in UK economy

“The print is the lowest since July 2016 and highlights the kind of weight that Brexit uncertainty is putting on the UK economy” reports forexlive.com. A series of weak PMI prints that began from last week is taking its toll on the pound as the composite reading seen today comes in at 50.3, near flat levels of economic activity. Source: forexlive.com

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Markets News Stocks 

As recession fears fade, the stars are aligning for one crucial part of the market — and BAML says its future returns could put stocks to shame

“Further increase in rates could pose problems for the bond market, he said” writes Marley Jay for businessinsider.com. On Wednesday, the Federal Reserve all but proclaimed it’s done raising interest rates for a while, saying it will be “patient” in choosing how it handles rates in the future.In a period where experts think the stock market will be volatile, BAML says bond prices might make bigger gains.”In the present environment investment grade credit outperforms equities,” Mikkelsen wrote, adding that trading volumes in that part of the bond market were extremely…

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Markets News Regulators Stocks 

Does the Fed’s dovish turn signal further gains for stocks? Bond investors have doubts

“The knee-jerk slump in long-term Treasury yields suggested bond investors think the crosscurrents confronting the U.S. economy may be more formidable than stock-market bulls think” writes Sunny Oh for marketwatch.com. The past week also saw investors wade through a deluge of corporate earnings reports. Source: marketwatch.com

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News Stocks 

Tesla improves its cash flow but reports a smaller profit for the fourth quarter

“The company reported after the stock market closed Wednesday that its cash in the bank grew from $2.9 billion to $3.6 billion during the 2018 fourth quarter” writes Russ Mitchell for latimes.com. Free cash flow was up a bit too: to $910 million, from $881 million in the previous quarter.But that boost was due to a drastic reduction in capital expenses, which can signal either a reduced need to buy, say, factory robots or a slowdown of investment in future growth. In the last three quarters, capital spending has shrunk…

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News 

Apple’s dismissal of 200 self-driving car employees points to a shift in its AI strategy

“Waymo, Alphabet’s self-driving car company, recently opened up its self-driving car service to the public in Phoenix, Ariz., and is widely considered to be the leaders in self driving” writes Steve Kovach for cnbc.com. And just last month, Giannandrea was promoted to Apple’s executive team as vice president of machine learning and artificial intelligence strategy. Source: cnbc.com

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Markets News Stocks 

Mark Hulbert: Dow needs to give back some gains before stocks see another big leg up

“Though individual Dow Theorists disagree on the specifics of how to apply the Dow Theory in any particular situation, there is a broad consensus on what it takes to generate a buy signal: 1” writes Mark Hulbert for marketwatch.com. The Dow Theory is the oldest stock-market timing system in widespread use today.That’s why bullishly predisposed Dow Theorists should be hoping for a market pullback. Source: marketwatch.com

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Crypto News 

Bitcoin’s Technicals Show Signs of a Bottom, Possible Short Term Rally: Analysts

“Key technical parameters signal that top cryptocurrency Bitcoin (BTC) may be finding a bottom, and could even be headed for a short term price hike, according to analysts at Bloomberg Jan. 22” writes Marie Huillet for cointelegraph.com. Having reportedly breached its lower VERA band limit yesterday, Bitcoin quickly rebounded to trade just above it — a behavior that Bloomberg suggests could signal a short term price surge. Source: cointelegraph.com

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