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Latest UVA News Posts

Difference between golf balls, electric cars

You may be wondering what the difference is between a golf ball and an electric car. The answer is simple: You can drive a golf ball a lot farther, at least 200 yards or so. One of the drawbacks to owning an electric vehicle has been the range that it can be driven before it has to be re-charged. Car makers have been improving the range recently. According to the …Read More

Are markets misreading economy’s strength?

In April, volatility became the most visible characteristic of the markets, often fluctuating between gains and losses of 1 percent in a single session. Clearly, markets are confused and participants have low future visibility. Some participants worry about a slowdown in the U.S., others are concerned with China’s apparent growth problems, and still others point to high P/E ratios with little or no growth in top line revenues. Falling equity …Read More

High-frequency trading revisited

Stock trading has evolved considerably since the original Buttonwood Agreement was first signed back in 1792 and 24 stockbrokers met outdoors on Wall Street under a buttonwood tree. The advent of the Internet and electronic trading has really advanced trading execution and the flow of information. Back in September, I wrote an article about high frequency trading, referred to as “HFT.” Since the publication of Michael Lewis’s book, “Flash Boys,” …Read More

Will the bond market’s recent rally last?

The bond market’s recent rally (higher prices, lower yields) has two causes, both of which may prove to be fleeting: 1. The Fed’s minutes clearly indicate that the majority of the FOMC members favor lower interest rates for a longer period of time than what the market had interpreted from “Yellen’s 6-month comment” at the press conference after the meeting. 2. The recent spate of economic indicators for March, while …Read More

Market Beat: An update on gaming

The Nevada Gaming Control Board recently released revenue numbers for the month of February. Gaming revenue in the state dropped by 13.7 percent in February compared to 2013. Statewide, casinos took in $926 million. Revenue from the Las Vegas strip was $555.7 million, which was a 20.2 percent drop from February 2013. The take for Washoe County casinos dropped slightly, by 1.41 percent to $58.7 million. Casinos at North Lake …Read More

The European Central Bank would be wise to avoid QE

The ECB’s go-slow approach to the establishment of a QE program is both rational and laudable. Read: ECB will prime quantitative easing, but far from pulling trigger yet The QE experiments in the U.S. and Japan are far from over.  While “low” inflation is cited as a reason to keep the money creation experiment alive, the definition of inflation that is used is highly questionable.  If the definition of “inflation” …Read More