Mar 7, 2017

Hedge funds are taking profits and fleeing the stock market

Traders work on the Mizuho Americas trading floor in New York. (Mark Lennihan/AP)

Hedge fund managers are increasingly worried about a richly valued stock market, selling parts of their stock portfolios and putting the money in safer assets, Bloomberg reports. Here's why smart traders are worried about the end of the Trump rally:

  • The difference between 30-year interest rates and 2-year interest rates is close to a four-month low, suggesting bond traders no longer believe the economy will accelerate significantly in the medium-term.
  • Price-to-earnings valuations are at highs not seen since the dot-com bubble.
  • DIsappointing consumer spending figures suggest that GDP will grow just 1.8% this quarter, and projections for first quarter GDP growth have consistently declined throughout 2017.
Source: Federal Reserve Bank of Atlanta

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Sanders requests recount of Iowa recanvass after results show shrunken margin

Photo: Joe Raedle/Getty Images.

Sen. Bernie Sanders said in a statement Tuesday night he will request a recount of the Iowa Democratic Party's recanvass results.

Where it stands: Both Buttigieg and Sanders requested partial recanvasses in Iowa last week after results were delayed and showed several errors following a software malfunction on caucus night.

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Energy deputy secretary nominee faces heat after contradicting Trump

Mark Menezes speaks at a forum in Addis Ababa, Ethiopia, June 12. Photo: Minasse Wondimu Hailu/Anadolu Agency/Getty Images

Trump administration officials are internally raising concerns about President Trump’s nominee for Energy deputy secretary, who appeared to openly contradict the president on nuclear waste storage at Nevada’s Yucca Mountain last week.

Driving the news: While speaking at a House Energy and Commerce subcommittee hearing last Wednesday, Mark Menezes told members of the panel that the Trump administration is still interested in storing nuclear waste at Yucca Mountain and that “what we're trying to do is to put together a process that will give us a path to permanent storage at Yucca."