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Compounding the pain, providers of so-called liability-driven investment strategies (LDI) are demanding more cash to support new and older hedging positions. The cash buffers now required are about three times bigger than previously requested, according to four consultants advising pension schemes, as market players seek bigger cushions against more volatile moves in bonds. Estimates of how much pension funds need to sell range but are in the hundreds of billions of pounds, although it is not known how much in assets schemes have sold already. "We are definitely not there," he said, referring to whether funds were close to raising the required cash by selling assets. He estimated 100 billion pounds could come from gilts and the rest from assets such as global credit, global equities and asset-backed securities.

Fund buying concentrated on crude (+46 million barrels) rather than fuels (+15 million) and came ahead of a decision by OPEC+ on Oct. 5 to cut the group's combined output allocations by 2 million barrels per day. Register now for FREE unlimited access to Reuters.com RegisterPortfolio managers purchased Brent (+27 million barrels), NYMEX and ICE WTI (+19 million), European gas oil (+6 million), U.S. diesel (+6 million) and U.S. gasoline (+4 million). As a result, the combined crude position climbed to 360 million barrels (18th percentile for all weeks since 2013) up from 314 million barrels (10th percentile) the previous week. The combined distillate position increased to 56 million barrels (45th percentile) from 45 million (40th percentile) the week before. Related columns:- Oil investors ready for recession (Reuters, Oct. 3)- Hedge funds dump distillates as recession risks intensify (Reuters, Sept. 26)- Recession will be necessary to rebalance the oil market (Reuters, Sept. 22)- Oil prices and financial markets brace for recession (Reuters, Sept. 15)John Kemp is a Reuters market analyst.

Hedge funds and other money managers sold the equivalent of 8 million barrels in the six most important petroleum-related futures and options contracts in the week to Sept. 20. Funds have sold a total of 186 million barrels over the 16 weeks since the start of June, according to records published by ICE Futures Europe and the U.S. Commodity Futures Trading Commission. (Chartbook: https://tmsnrt.rs/3Stv0XG)The most recent week saw purchases of Brent (+6 million barrels), NYMEX and ICE WTI (+3 million) and U.S. gasoline (+2 million) but sales of U.S. diesel (-3 million) and European gas oil (-15 million). Middle distillates such as diesel and gas oil are mostly used in freight transportation, manufacturing and mining, so they are heavily geared to the business cycle. Fund managers have cut their position in mid-distillates in each of the last three weeks by a total of 39 million barrels as fears of a recession have intensified.

Restoring spare capacity to more comfortable levels will require a business-cycle downturn, which is why a recession or at least a serious slowdown is inevitable. RECESSIONS AS RESETSProfit-maximising enterprises do not intentionally invest in higher oil inventories or spare production capacity. Recessions in 1974, 1980, 2008 and 2020 all left oil production and consumption on a permanently lower trajectory than before. There is no recorded instance where spare oil production capacity rose when the global economy continued to grow strongly. It explains why inflationary pressures are cyclical, subdued in the immediate aftermath of a recession, when spare capacity is plentiful, then building progressively as the expansion matures and spare capacity erodes.

☆ Rising mortgage rates hit home builders as buyers pull back
▼ + stars: | 2022-09-22 | by ( Paul R. La Monica | Cnn Business | ) edition.cnn.com time to read: +1 min

Mortgage rates have also skyrocketed to their highest level in 14 years. "Sales have clearly been impacted by rising interest rates," Stuart Miller, Lennar's executive chairman, said in the company's earnings release. Miller added that "there remains a significant national shortage of housing, especially workforce housing, and demand remains strong." Lennar also reported that orders for new homes fell 12% from a year ago and that it is trying to "navigate the rebalance between price and interest rates." Mortgage rates are likely to head even higher given the Federal Reserve's series of big interest rate increases and likely plans for even more hikes in the coming months.

Pros Check mark icon A check mark. No account or trading fees, and low fees to own funds Check mark icon A check mark. Access to Certified Financial Planners at no additional charge Check mark icon A check mark. Want a low-cost, hands-off investment account that combines automated features with management from a team of human investment professionals Check mark icon A check mark. Free stock, option, ETF, and cryptocurrency trades; 1.5% APY on uninvested cash Check mark icon A check mark.

Compared to actively managed funds, target-date funds also have lower management costs, better known as expense ratios. Cons of target-date fundsOn the flip side, target-date funds come with some cons as well, one being that they are modeled assuming a one-size-fits-all approach. Vanguard Learn More Minimum deposit and balance Minimum deposit and balance requirements may vary depending on the investment vehicle selected. Betterment Learn More Minimum deposit and balance Minimum deposit and balance requirements may vary depending on the investment vehicle selected. Wealthfront Learn More On Wealthfront's secure site Minimum deposit and balance Minimum deposit and balance requirements may vary depending on the investment vehicle selected.

☆ How a former Goldman Sachs whiz kid living in Puerto Rico exploited a generational shift in investing to become one of Millennium's most profitable traders
▼ + stars: | 2022-01-24 | by ( Alex Morrell | Bradley Saacks | ) www.businessinsider.com time to read: +11 min

Millennium has dominated the index-rebalance trade thanks to Glen Scheinberg, 35, and his SRBL team. One of the hottest trading strategies in recent years has required an intense fixation on some of Wall Street's supposedly dullest financial products: index funds and exchange-traded funds. The SRBL team was born from a Goldman Sachs trading deskIn 2014, Millennium poached 27-year-old Scheinberg from Goldman Sachs' program-trading desk — the team at Wall Street banks that trades baskets of stocks using algorithms. For Scheinberg's team, 2020 wasn't a one-off. Millennium's prodigy decamps to paradise for tax savings and bird-watchingDespite its success, much about the SRBL team remains shrouded in mystery.

☆ Microdosing magic mushrooms for 6 months left me feeling healthier, happier, and more in harmony with others
▼ + stars: | 2021-09-29 | by ( Benjamin Ramm | ) www.businessinsider.com time to read: +5 min

Benjamin Ramm first took psilocybin in a controlled setting in the Netherlands in 2019. So I turned to a medicine that I knew could help reset my mind: psilocybin, or "magic" mushrooms. In April 2019, I'd had my first immersive psychedelic experience — a significant dose of psilocybin truffles, on a retreat in the Netherlands organized by the UK Psychedelic Society. For some time, I had wanted to try microdosing and felt more confident about experimenting with psilocybin after the retreat. When taking a significant dose for the first time, I think it is essential to be in the company of supportive friends or experienced facilitators who offer guidance.

According to RenoFi, the average price of a single-family home in the U.S. could reach $382,000 by 2030. For example, the average price of a home in New York City this year is $795,000, but the average price around Albany in Upstate New York is $227,500, according to Redfin trends. It projects that San Francisco will have the highest average home value in the country at a staggering $2,612,484. For example, Betterment doesn't require clients to maintain a minimum investment account balance, but there is a ACH deposit minimum of $10. So if you want to buy a $400,000 home in 2030, you've got 9 years to start saving.

☆ Carbon offsetting: Can we buy our way out of climate catastrophe?
▼ + stars: | 2021-09-23 | by ( ) edition.cnn.com time to read: 1 min

Carbon offsetting promises a way to rebalance greenhouse gas emissions through reforestation and renewable energy. But can it avert a climate catastrophe or is it actually doing more harm than good? Source: CNN

Before reading "Millionaire Teacher," I thought my investing options were: go it alone, or hire a pro. But, as it turns out, there's a Goldilocks-esque option sitting smack-dab in the middle that I'd never considered: intelligent investment firms. Hallam uses Vanguard's Target Retirement Funds to outline how intelligent investing works (though robo-advisors aren't quite the same thing). In addition to the Vanguard Target Retirement Funds described above, which come with a wide range of target retirement dates, Hallam lists out a series of companies that offer the same services. ), you might really benefit from handing the reins over to an intelligent investment firm.

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☆ Gwyneth Paltrow's Goop must stop making bogus claims about its $66 'vaginal eggs' because of a legal settlement. Here's the real science.
▼ + stars: | 2018-09-05 | by ( Hilary Brueck | ) www.businessinsider.com time to read: +8 min

A "vaginal egg" will not balance your hormones, regulate your menstrual cycle, or help with bladder control. On Tuesday, Goop settled a lawsuit brought by the Santa Clara District Attorney’s office and others that alleged the company's claims about its "vaginal eggs" were hogwash. Candace Lowry/YoutubeThe statement added: "Goop provides a forum for practitioners to present their views and experiences with various products like the jade egg. I need to start my jade egg practice," she said with a laugh. Jen Gunter, a California-based obstetrician and gynecologist, wrote a widely cited blog post in 2017 about why Goop's vaginal jade eggs are a bad idea.

AdvertisementThe online investment platform has created a tool that will be available to registered investment advisers, allying itself with Fidelity Institutional Wealth Services to promote and distribute the feature. The new product, called Betterment Institutional, allows a financial adviser to provide clients with a Betterment portfolio branded to their own practice, and then help manage that client's investments through the platform. He points out that Betterment Institutional should help advisers focus on their areas of expertise, while leaving the little stuff to Betterment. BettermentDavid Canter, executive vice president of practice management and consulting at Fidelity Institutional Wealth Services, has worked with Betterment on the launch. This article has been updated to clarify that Betterment Institutional will be available to financial advisers independent of Fidelity.

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