Raoul Pal on the strong dollar, tail risk investing and the oil freefall
The Financial Industry Regulatory Authority (FINRA) has fined 10 banks, including Goldman Sachs and Citigroup, for failing to shield analysts from pressure to promote stock. This comes a decade after a 2003 research settlement that barred research analysts from participating in IPO pitches because of potential conflicts of interest. Today, the whole stock underwriting process is riddled with conflicts of interest. Erin weighs in.
Erin is also joined by Raoul Pal, founder of Real Vision TV and Global Macro Investor. Though Canadian households are heavily in debt and house prices are increasing, investors are dipping back in to the market. Raoul gives his views and what market issues we should be cautious of. He believes that the strong dollar is driving a lot of the tail risk and says we should expect a divergence in emerging markets and developed markets performance as a result.
After the break comes Defining Moments, including the best comments from our guests this week on what the US and UK can learn from Japan, what will happen if the Fed raises rates, how wages affect consumption, the problem with anti-minimum wage arguments, whether studying economics helps to make good investment decisions, and how technology affects our labor system.
And in The Big Deal, Erin and Edward Harrison are talking oil. Take a look!