Finance

Artificial intelligence is changing how investors’ money is being managed

The Dow Jones Industrial Average shed more than 1,300 points earlier this month in the most dramatic drop since February. If you are a client of Morgan Stanley Wealth Management, you may have received a message from your financial advisor. The purpose of the message would be to tell you exactly what happened in the market and what the firm’s investment professionals are saying about it. It would also tell you your portfolio’s current probability of success in light of recent events. The email would come from your financial advisor. But behind the scenes, they are getting help from a source you might not expect: artificial intelligence. Morgan Stanley is one firm experimenting with how these new technologies can be applied to better manage clients’ money. Artificial intell...

As a voodoo-practicing advisor is convicted, here’s how to avoid the nightmare of bad money advice

We’ve all heard of voodoo economics, but voodoo investing? Noted Washington, D.C.-area radio personality and former financial advisor Dawn Bennett was convicted earlier this week of fraud, found to have bilked 46 listeners, advisory clients and friends who trusted her out of some $20 million in a Ponzi scheme. Prosecutors say she used voodoo in an otherworldly attempt to escape justice. Founder and CEO of Bennett Group Financial Services (now a defunct firm) and the host of weekly radio program “Financial Myth Busting with Dawn Bennett,” Bennett reportedly used investor money to pay Hindu priests in India for ceremonies to ward off investigators looking into her business practices. Stranger still, she wove voodoo spells around jars of beef tongue, labeled with Securities ...

Guest Contribution: “Modeling Time-Variation Over the Business Cycle (1960-2017): An International Perspective”

Today, we are pleased to present a guest contribution written by Enrique Martínez-García (Federal Reserve Bank of Dallas), based on his forthcoming article in Studies in Nonlinear Dynamics and Econometrics. The views expressed here are those solely of the author and do not reflect those of the Federal Reserve Bank of Dallas or the Federal Reserve System. A sustained wave of globalization has led to deeper ties in the post-World War II period: The decision to terminate the convertibility of the U.S. dollar into gold in 1971 effectively ended Bretton Woods, ushering in a new era of fiat and free-floating currencies. The international monetary system has evolved since—removing the multilateral constraints of Bretton Woods (which fixed exchange rates and distorted the allocation of resources w...

Give Dan Loeb An Oscar

(YouTube) As you may have heard, Dan Loeb is in a little tiff with the people who run Campbell’s Soup. As such, you may be expecting a blistering open letter to a board of directors right now. Perhaps a scorching PowerPoint presentation laying out in excruciating detail all of Campbell’s many, many failings. But Dan Loeb’s rage cannot be contained to such media; he’s branching out. And no matter what that asshole George Clooney says, the man has a flair for film. And his brutal putdowns come across just as strongly on video as in the black and white of the printed word. [embedded content] OK, so maybe the “Mmm Mmm Bad” bit’s a little hokey and dated. (Does Campbell’s still even use “Mmm Mmm Good” in commercials anymore? I don’t think I’ve seen one since Donovan McNabb was starring in them,...

‘One Of The Greatest Houses In New York’ Available For 2,500 Units Of One Of The Worst Currencies On Earth

(Google Maps) Do you have $15.9 million worth of fake currency that used to be $49 million worth of fake currency? Would you like to turn that into something tangible before it becomes $8.75 million worth of fake currency? Or less? Maybe something nice and solid like 10,720 square feet on Riverside Drive? “One of the greatest houses in New York,” if you’re interested in its seller’s opinion? If so, get in touch with Roy Niederhoffer right away. The hedge fund manager is eager to turn his $12.9 million investment into something less than that. “I’m a big believer in Bitcoin,” he says. “I really am so bullish on it, and I want to own more of it.” Were someone to pay in the cryptocurrency, Niederhoffer says, he would simply cover his share of the closing costs in hard currency. “Whatever the ...

JP Morgan’s Jamie Dimon makes his biggest bet on Silicon Valley with new ‘fintech campus’

Jamie Dimon has never been shy about his envy for Silicon Valley. The CEO of J.P. Morgan Chase frequently travels west to meet with venture capitalists and entrepreneurs, touts his bank’s hefty investments in technology and famously warned in 2015 that “Silicon Valley is coming,” thanks to “hundreds of startups with a lot of brains and money working on various alternatives to traditional banking.” Dimon is now opening his wallet in the region like never before. Early next year, J.P. Morgan will start development of a “new fintech campus” for over 1,000 employees in Palo Alto, one of the most expensive commercial real estate markets in the country. Sandwiched between Facebook to the north and Google to the south, the building will be located at Stan...

CEO Doing Bad Trump Impression Tells Analysts That They Should Consider Suicide During Very Chill Earnings Call

In some ways, Cleveland-Cliffs CEO Lourenco Goncalves is just another South American-born, Trump-loving millionaire mining executive. But in other ways, Lourenco Goncalves is an unhinged middle-aged baby who can’t stand seeing his company get a “Hold” rating from Goldman Sachs. After just one solitary analyst question during this morning earnings call, Goncalves decided to go full “Elon Trump” and say this: It’s unbelievable that this big banks has still employ this type of people, you should resign for your lack of knowledge of things, it’s not like that you don’t understand, you are very one of the best, it’s not like you don’t understand our business , you don’t understand your own business. You are a disaster. You are an embarrassment to your parents. With this being said, we are going...

If The LA Chargers Play A Game And No One Goes To See It, Are They Really The LA Chargers?

On the one hand, the Chargers are having trouble establishing themselves in the Los Angeles market and the franchise’s future there has been a topic of discussion among NFL owners. On the other hand, the Chargers are locked into a 20-year lease that hasn’t even started yet because the stadium they will share with the Rams in Inglewood is under construction, so they’re set in Tinseltown until at least 2040. On the… uh… third hand, it does not matter where the Chargers play. Not in the nihilistic way that nothing matters now anyway and we’ll all be dead by 2040, but in the way that it does not matter where any NFL team plays. Through three home games this season, the Chargers have drawn a total of 76,110 fans to their temporary home in Carson, which would be less than the average single-game...

Jeff Vinik Invests In The Vandelay Industries Of Silk

George Costanza thinks we should all be ensconced in velvet. Jeff Vinik is a hedge fund manager, and his tastes run a little richer. Vinik, 59, led an investment of $30 million in silk startup Silk Inc., a maker of pure silk skincare products. The new money, which bring Silk’s total funding to $51 million at an undisclosed valuation, will be used to expand into the coating of textiles, such as performance materials, that would typically be done with chemicals…. Silk Inc.’s difference is that it is producing pure silk protein in liquid form from natural silk cocoons and water, according to Greg Altman, Silk’s cofounder and chief executive. The all-natural product could be used to coat textiles in a way that would allow them to avoid chemicals that could seep into their wearers’ skins. The T...

Guest Contribution: “China’s Q3 GDP Reportedly Slowed to 6.5%. Or Is It 6.4%?”

Today, we present a guest post written by Jeffrey Frankel, Harpel Professor at Harvard’s Kennedy School of Government, and formerly a member of the White House Council of Economic Advisers. Headlines today note a further slowdown in China’s growth. Newly announced GDP data give a preliminary estimate of 6.5 % in the 3rd quarter of 2018, relative to Q3 of 2017. The growth rate had been 6.7% previously. The change is part of the long-term slowdown that, perhaps inevitably, followed the spectacular 10% average growth rate achieved by China from 1980 to 2010. One thing that interests me in the reports is a particular (very wonkish) detail. For the US and most other countries, the quarter’s GDP is routinely reported relative to the preceding quarter, not relative to four quarters ago. Why do th...

A Day In The Life Of A Morgan Stanley First-Year Analyst Who Wakes Up At 3 a.m. Covered In His Own Sweat And Fear, Eats When He’s Allowed, Cries Alone In Elevators, And Fantasizes Every Day About Running Away

Do you like in-depth looks at the real lives of totally real finance professionals? Of course you do! Ichabod Munch is a busy young man indeed. The Morgan Stanley first-year M&A analyst is fresh out of one of those small New England liberal arts colleges, and trying to make it on the bright lights of Wall Street. He previously interned at Credit Suisse where he was told to never speak of what he saw there, and has for some reason never thought about jobs outside the finance sector. He recently shared a usual day in his life with Dealbreaker…for some reason. Ichabod wakes up at 3 am most days. He meets consciousness gripped in the cold panic of existential dread, realizing that he just fell asleep 45 minutes ago and will soon be working another 18 hour day. “I don’t always beg for death...

PayPal surges 9% after its Venmo app shows signs of becoming a moneymaker

PayPal shares soared 9 percent on Friday after the company beat expectations on earnings and revenue and announced positive news about its peer-to-peer app Venmo. The payment company’s stock hit a high above $86. Shares are up more than 26 percent year over year. On Thursday, PayPal reported third-quarter earnings that beat Wall Street’s expectations, though payment volumes fell slightly short of estimates. The company also raised its fourth-quarter and full-year guidance. Venmo, which has struggled to contribute to PayPal’s bottom line, had an especially bright third quarter. Its total payment volumes grew 78 percent, to $17 billion. That still makes up a fraction of PayPal’s total $143 billion in volume, but it’s an encouraging sign, PayPal CEO Dan Schulman ...