This Is Where The Money Fueling The Stock Market Is Coming From

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With all the day-to-day noise that we are presented with in the market, it is important to remind ourselves of what consistently drives the market; fear and money-flows. In this piece we focus on the latter.

It is important to understand that both the economy and the stock market are open systems where money can flow in and out. In other words, they are open systems.

A poker game around the fold-out table in your recreation room is not an open system; it is both a closed system and a zero-sum game. This means that the aggregate amount of money in the game is fixed, and that the money will flow around the table as the players who lose, transfer the money to those who win. Normally, no outside money comes onto the table, and the amount won equals the amount lost (a zero-sum game).

The economy and the market

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Germany’s Financial Regulator Exec Won’t Resign

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Despite calls for his resignation in the wake of the Wirecard AG scandal, the president of the German Federal Financial Supervisory Authority (BaFin) has refused to go.

While Felix Hufeld acknowledged the nation’s regulatory agency should have called for investigation sooner, he told reporters Wednesday (Sept. 2) that he will not resign “as long as my country and Europe have trust in me,” the Financial Times reported.

Members of the Bundestag, Germany’s Parliament, have raised questions about Hufeld’s lack of action over alleged criminal activity despite signs of trouble at the German payment company.

“We didn’t see the wood for the trees … for too long we relied on formal instruments,” he said, the newspaper reported.

In June, Wirecard filed for bankruptcy protection after it admitted 1.9 billion euros ($2.1 billion) said to have been deposited in two Philippines banks did not exist.

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Stocks book fresh round of records, Dow ends 1.5% shy of all-time high, on hopes of COVID treatments, cures

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MARKET SNAPSHOT



a man standing in front of a building: The


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The

U.S. equity benchmark indexes closed in record territory Wednesday, as investors drew hope from progress in the development of tests and vaccines for COVID-19.

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Investors largely ignored a mixed batch of economic reports, including a private-sector jobs reading that came in weaker than expected, suggesting only a slow recovery from the coronavirus pandemic.

How did the benchmarks perform?

The Dow Jones Industrial Average (DJIA)surged 454.84 points, or 1.6%, ending at 29,100.50, or 1.5% away from its Feb. 12 closing high of 29,551.42. The S&P 500 index (SPX) climbed 54.19 points, or 1.5%, to settle at a record 3,580.84, its 22nd record close this year. The Nasdaq Composite Index (COMP) advanced 116.78 points to close at a record 12,056.44, a gain of 1%, and its 43rd record close of the year.

On Tuesday, the Dow rose 215.61 points to end at 28,645.66, or

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There’s an Excellent Reason Buffett Keeps Buying Bank of America Stock

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a sign on a window: The logo of Bank of America in modern office building in Beverly Hills.


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The logo of Bank of America in modern office building in Beverly Hills.

Renowned investor and in Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) CEO Warren Buffett is known for really liking a handful of mega-cap names. Bank of America (NYSE:BAC) is among them, and Buffett’s been known to own sizable quantities of BAC stock.



a sign on the side of a building: The logo of Bank of America in modern office building in Beverly Hills.


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The logo of Bank of America in modern office building in Beverly Hills.

Perhaps it could be argued that Buffett likes bank stocks in general and doesn’t have any particular preference for BAC stock. After all, Berkshire has been known to take positions in big-bank names like Wells Fargo (NYSE:WFC), JPMorgan Chase (NYSE:JPM) and Goldman Sachs (NYSE:GS).

A recent U.S. Securities and Exchange Commission Form 13-F filing, however, shed some new light on what Buffett might

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World Bank Group Exceeds 2020 Climate Finance Target for 3rd Consecutive Year – $21.4 Billion in Funding for Climate Action – Malawi

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STORY HIGHLIGHTS

  • In fiscal year 2020, the World Bank Group allocated nearly $21.4 billion to climate-related investments, surpassing its climate-finance target for the third year in a row.

  • Bank Group climate finance exceeded $83 billion over the 5 years that the first Climate Change Action Plan (2016-2020) was in effect.

  • Three country snapshots illustrate ways in which climate change considerations were integrated into projects in Malawi, Bangladesh and Tunisia.

Facing a Development Challenge Like No Other

As countries struggle with COVID-19, they are also being hit by worsening climate impacts. Already, 2020 looks set to be the hottest year on record, potentially bringing more droughts, floods, and intense storms. All countries — particularly the poorest and most vulnerable — could face the compound impacts of climate change and COVID. Recently, India and Bangladesh were hit by the Category 5 Hurricane Amphan, forcing authorities to handle the competing goals of evacuation

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ETH/USD ready to retest two-year high after a short-lived correction

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  • Ethereum (ETH) has been back on recovery track amid DeFi boom.
  • The coin may retest $440.00 after a short-lived bearish correction.

Ethereum (ETH) has hit $430.00 during early Asian hours amid strong bullish momentum. While the coin retreated to $423.00 by press time, it is still over 4% higher from this time on Sunday and close to the highest level in the recent two years.  Ethereum’s trading volume exceeded $12 billion, while its market capitalization is registered at $47.5 billion.

ETH has been capitalizing on a DeFi boom recently. The explosive growth of the decentralized finance sector (DeFi) spurred the demand for the second-largest digital asset. ETH/USD has gained 10% over the weekend and 220% since the beginning of the year,  and the upside momentum is gaining traction.

ETH/USD: The technical picture

On a weekly chart, ETH/USD recovered from the sharp sell-off to $370.15 during the previous week and settled

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UPDATE 2-UK shares up for first time in 4 days on signs of economic recovery

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(For a live blog on European stocks, type LIVE/ in an Eikon news window)

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* UK homebuilders surge as house prices hit record high

* Barratt up, sees higher 2021 home completions

* Media, beverage firms, personal goods stocks lead gains

* FTSE 100 up 1.3%, FTSE 250 up 0.5% (Updates prices throughout, adds comments)

By Shashank Nayar and Shreyashi Sanyal

Sept 2 (Reuters) – London-listed shares rose for the first time in four sessions on Wednesday as a surge in house prices to record highs powered stocks of homebuilders, with Barratt jumping to the top of the FTSE 100.

The blue-chip index and the mid-cap FTSE 250 climbed 1.3% and 0.5%, respectively, with homebuilders marking their best day in nearly two months as data showed house prices jumped 2% in August, the biggest month-on-month increase since 2004.

Britain’s top homebuilder, Barratt Developments Plc jumped 8.6% as it

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Exclusive: EU Draft Plan Targets Free Carbon Credit Cut for Most Industries | Investing News

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BRUSSELS (Reuters) – Most industries covered by the European Union’s carbon market would see free credits cut by the highest possible rate over the next five years under draft plans, potentially costing some of the biggest polluters millions of euros.

The carbon market is the EU’s main policy for cutting greenhouse gas emissions, by forcing power plants and factories to buy credits to cover their emissions.

These credits are trading near record highs as speculators have bought into the idea that tougher EU climate targets will boost demand, while analysts predict further rises.

Although industry gets some free credits, to help avoid “carbon leakage”, when companies relocate outside the EU to avoid carbon costs, the bloc has agreed to reduce them over the next decade to curb pollution and meet climate goals.

EU industry emitted around 570 million tonnes of carbon dioxide (CO2) equivalent under the carbon market regime last

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TD Wealth and Behavioural Economics in Action at Rotman renew agreement to further advance study of Behavioural Finance in Canada

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The MarketWatch News Department was not involved in the creation of this content.

TORONTO, Sep. 2, 2020 (Canada NewsWire via COMTEX) —
Behavioural Finance helps TD advisors identify investing blind spots for clients, including ones as a result of COVID-19

TD Bank Group (TD) and University of Toronto’s Behavioural Economics in Action at Rotman (BEAR) research centre today announced a renewed agreement to continue to apply the field of behavioural finance to wealth management. By building on the relationship and leveraging BEAR’s expertise, TD Wealth will be able to further examine and understand the psychology of making financial decisions to help clients reach their financial goals.

Behavioural finance is the study of how personality and emotions influence investing decisions. In particular, how financial blind spots – individual and natural personality traits – might influence a person’s decision making. TD Wealth applies behavioural finance and the study of personality to help

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