Global Macro Perspectives
Markets got their boost when it became obvious that FED chairman Mr. Ben Bernanke will be conformed for the second term. The trading feels anemic, but I think that we will not see a sequel to Friday action in the next days. VIX is down, equity up, treasuries down. Greece, contrary to my views will […]
Equities Equity performance was impressive in recent month, down to the last trading day of the year. Thursday trading showed that the investors are not so confident that the upside will continue, revealing, maybe a moment of truth. Everybody is long because of fear not to miss further gains, but scared of a potential slip. […]
After Germany (the U.S. is stimulating all the time), Japan announced some sort of stimulus. Telegraph story: Japan unveils $80bn of direct spending in $274bn stimulus package. $80 is peanuts for a Japan size of economy. The monetary stimulus was also small. Looks like politicians are trying to convince people they are doing something. Yesterday’s […]
I am starting a monthly strategy overview to have my strategy in one place and a to test accuracy of my views. Written revisions and accommodations would also contribute to my investment discipline. Equities I have been surprised by the market strength as the market rejected the Dubai turmoil as a correction catalyst. This has […]
Ben Bernanke speech yesterday has win over the markets and the positive vibes were hitting the markets even today. Nothing special in the speech, both bulls and bears had their moments, but as bulls are currently in the lead the print was positive in all. Interesting, Mr. Bernanke admitted influencing stock markets: …Partly as the […]
Noting much on the news front today. Mr. Bernanke speech yesterday stirred up the markets sending U.S. dollar up, and treasuries down. The rhetoric is unchanged, the highlight is that the FED is ready to tighten the monetary policy when the economy starts to recover. Bloomberg link: Bernanke Ready to Tighten When Recovery Sufficient.
New highs everywhere, but the feeling, at least for me is unsettling. Setting aside my skeptical mind, looks we could fly even higher. Still waiting for the right point to initiate short SPY position.
Today’s news from China was taken by the media as a positive surprise. China’s industrial production rose 12.3% yoy. New lending was at 60.1 billion USD up 15.3% mom and 51.1% yoy. M2 rose 28.5% in August. Everything is blooming. On the other side. Exports on the other side fell 23.4% in August yoy. I wonder who is buying the stuff they are producing and how long can this last?