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2017 could go down as one of the most boring years ever for the stock market.
Sure, the S&P 500 has closed at record highs 66 times this year, the most since the mid 1990s.
But volatility has remained historically low. And on Monday, the S&P 500 completed its longest streak ever without a 3% intraday drawdown. At the close, it overtook the previous record of 241 days set in 1996.
According to Bank of America Merrill Lynch, the stock market is now vulnerable to an “overdue fragility event.“
There’s a bunch of hedge fund news today, so let’s jump right in.
- Greenlight Capital, a $7 billion hedge fund founded by David Einhorn, told clients that the market may have adopted an “alternative paradigm” for calculating the value of stocks.
- It also says Tesla is putting “inadequately tested and dangerous products on the road.”
- Seth Klarman, one of Wall Street’s most revered investors and founder of Baupost Group, says investors are asking the wrong question about the raging bull market.
- Ray Dalio, the founder of Bridgewater, the world’s largest hedge fund, shared brutal analysis of the US economy.
Elsewhere in Wall Street news, there has been a shake-up at the top of Credit Suisse’s US equities business.
In politics, the biggest roadblock for Trump’s tax plan could be Trump himself. The tax plan could give a bigger boost to foreign investors than America’s middle class, according to a new analysis. And two charts show why ripping up NAFTA wouldn’t solve Trump’s big issues with the deal.
And severe weather has cost the US government $350 billion since 2007 — and climate change could make it much worse.
In markets news and views:
- Nike’s biggest sneaker advantage could become its biggest liability
- GM isn’t going to break itself up — yet
- Nvidia’s newest chip has a secret weapon in the AI race
- Snap’s “shockingly low” internal data reveals why its Spectacles glasses flopped
- Biogen’s profit beat Wall Street’s expectations because of one key drug
- Online holiday shopping is poised to beat in-store sales for the first time ever — and it’s terrible news for retailers like Sears and Macy’s
- One of Sears’ crucial 100-year supplier relationships has died as sales plummet
- Caterpillar beats on earnings and raises 2017 forecast as demand soars
- A company that’s taking a new approach to tackling Alzheimer’s just landed a $225 million endorsement
- GOLDMAN SACHS: There are only 50 stocks in the world that are perfect for this environment
Lastly, Aston Martin is building luxury condominiums that will cost up to $50 million each — see inside.