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2017 could go down as one of the most boring years ever for the stock market.
Sure, the S&P 500 has closed at record highs 66 times this year, the most since the mid 1990s.
But volatility has remained historically low. And on Monday, the S&P 500 completed its longest streak ever without a 3% intraday drawdown. At the close, it overtook the previous record of 241 days set in 1996.
According to Bank of America Merrill Lynch, t
he stock market is now vulnerable to an “overdue fragility event.“
There’s a bunch of hedge fund news today, so let’s jump right in.
- Greenlight Capital, a $US7 billion hedge fund founded by David Einhorn, told clients that the market may have adopted an “alternative paradigm” for calculating the value of stocks.
- It also says Tesla is putting “inadequately tested and dangerous products on the road.”
- Seth Klarman, one of Wall Street’s most revered investors and founder of Baupost Group, says investors are asking the wrong question about the raging bull market.
- Ray Dalio, the founder of Bridgewater, the world’s largest hedge fund, shared brutal analysis of the US economy.
Elsewhere in Wall Street news, there has been a shake-up at the top of Credit Suisse’s US equities business.
In politics, the biggest roadblock for Trump’s tax plan could be Trump himself. The tax plan could give a bigger boost to foreign investors than America’s middle class, according to a new analysis. And two charts show why ripping up NAFTA wouldn’t solve Trump’s big issues with the deal.
And severe weather has cost the US government $US350 billion since 2007 — and climate change could make it much worse.
In markets news and views:
- Nike’s biggest sneaker advantage could become its biggest liability
- GM isn’t going to break itself up — yet
- Nvidia’s newest chip has a secret weapon in the AI race
- Snap’s “shockingly low” internal data reveals why its Spectacles glasses flopped
- Biogen’s profit beat Wall Street’s expectations because of one key drug
- Online holiday shopping is poised to beat in-store sales for the first time ever — and it’s terrible news for retailers like Sears and Macy’s
- One of Sears’ crucial 100-year supplier relationships has died as sales plummet
- Caterpillar beats on earnings and raises 2017 forecast as demand soars
- A company that’s taking a new approach to tackling Alzheimer’s just landed a $US225 million endorsement
- GOLDMAN SACHS: There are only 50 stocks in the world that are perfect for this environment
Lastly, Aston Martin is building luxury condominiums that will cost up to $US50 million each — see inside.