According to EurekaHedge, Hedge Fund launches are down 30% from the 2015-2016 average. Nobody should be surprised by this … with Central Banks buying every AAA security they can get their hands on (less $50m per month in the US), investing gets pushed out the risk curve. Pensions/401k providers can’t meet obligations with treasuries, so they move to muni bonds, and then to corporate bonds, and then to equities, and then to alternatives. The greater the manager’s mandate for risk, the the more quickly he or she moves out that curve.
On Thursday, Average Hourly Earnings “spiked” 2.9% year on year. Is 2.9% a lot?