The top 3 is the same as it was in February 2018. Korea tops the list driven by strong earnings momentum and cheap valuation No. 2 China, has strong price momentum Thailand is driven by solid fundamentals and low price volatility
Printing / borrowing money to generate the unsustainable illusion of “growth” sets up the collapse of the entire Keynesian edifice. Of the many delusions of modern economics, perhaps the greatest is that the dominant Keynesian model reflects permanent dynamics of advanced economies. Economics, along with other social sciences, makes an implicit claim that its econometric claims…
Stanphyl Capital June 2018 letter to investors on Tesla Inc. (NASDAQ:TSLA) The fund was absolutely massacred this month, and it was primarily due to our large short position in Tesla, to which I added on each new piece of negative news, much of which was indicative of the kind of outright fraud (see below) that…
Remember Mario Draghi’s “fallen angel” demons? Back in January, the ECB liquidated its entire position in Steinhoff after the company’s bonds plunged following a high profile accounting scandal. That episode was embarrassing for the ECB to the extent it laid bare the inherent dangers in indiscriminately buying up ostensibly “safe” IG corporate bonds. But perhaps more importantly, it…
Dollar/yen made a cautious move to the upside as trade war fears were subsided quite quickly. Can this last? A busy start to the week features the FOMC Minutes, the NFP, some surveys from Japan, and the recurring theme of trade wars. USD/JPY fundamental movers – Some relief in the trade wars The Trump Administration made threats against the…
The EU is poised to retaliate against Trump. The Financial Times editorial board endorses the idea. The Financial Times reports EU Warns of $300 Billion Hit to US Over Car Import Tariffs. The figure roughly corresponds to the amount of EU imports of autos and parts. The document, which the FT did not post or link…
Even with the recent “pop” in $BTC prices, I wanted to share a few bearish charts. I’ve been yammering on about cryptos more than is necessary, I suspect (I’ve never owned a single one), but as a chartist I’ve been captivated at all the right triangles showing up, as with Bitcoin: In some cases, the…
Despite Thursday’s bounce and Friday’s half-hearted effort to follow through on that move, stocks just logged their second consecutive losing week. Indeed, Friday’s failed follow-through is even more alarming, in that the bulls had their chance to get things going again, but ultimately yielded to the bears. There are still some technical support levels…
The Trump Tariff plans have an Achilles’ Heel. We know that there are basic weaknesses that can be found in all tariff plans. For example, the consumer in the US is very weak, tariffs have failed in history, etc. But the real weakness of the plans for our time is the global supply chain. As…
