EICKnotes for Nov 11, 2013
Interesting stuff from this mornings financial news.
1. Canadian Housing
Add another singer to the chorus of Canadian housing warnings. - Canada's housing market teeters precariously (FT)
2. US Housing
The increase in mortgage rates in 2013 looks like it might be putting a damper on the still fragile US housing recovery.
- Mortgage Payments Rise To 40% Of Consumer Incomes: A Five Year High (Zero Hedge)
- 2 Potential Headwinds for the US Housing Market (Pragmatic Capitalism)
3. Always about the FED
The Federal Reserve seems to be struggling to eliminate the Two-Big-To-Fail problem. Fixing TBTF which requires de-leveraging financial institutions likely negates some of the monetary stimulus they continue to pump into the system through quantitative easing.
4. Some interesting academic finance papers
- The Significance of Trading Frequency and Stop Loss in Trend Following Strategies (SSRN)
- Investment Strategies with VIX and VSTOXX Futures (SSRN)