Daily Reading – Monday, June 13, 2011

The Big Picture: Markets Down 6 Weeks Consecutively (and that means…)

History may not repeat, but it often rhymes.

This table, assembled by Ron Griess of The Chart Store, shows what markets have done over the past century following any stretch of down 6 consecutive weeks.

FT Alphaville: The foreigners are frightened


China’s B shares index, which contains 53 Chinese companies that foreigners are allowed to own, has finally succumbed to those fraud and accounting scandals, losing 12.8 per cent last week alone.

FT Alphaville: ENRC(ore) International?

That follows a Sunday Times report that claimed everyone’s favourite commodities trader is plotting a transformational £12bn bid for the Kazakh mining group, which recently gunned two of its independent non-executive directors.

FT BeyondBRICs: EM assets: rich and getting richer

Here at the FT the editor has asked us not to use the term “eye-popping”, which has become commonplace and lost its impact. But at the risk of putting beyondbrics’ career in jeopardy, here we have a chart (after the break) worth a bit of hyperbole.


The stock market rally has been due to the Fed’s monetization and the subsequent flow of liquidity into financial assets.

There is no recovery in the real economy, because there has been no genuine reform of the financial system or rebalancing of the distorted US economy.

Bronte Capital: Sino Forests – some thoughts

So lurking around Sino Forest’s land are 17 mills this size (or one mill 17 times this size of some variant thereon).  And that is presuming there are no other producers in the area other than Sino Forests. Sino has promised to take analysts and investors to see their operations. I make a suggestion: get them to take you to all the chip-mills that process their timber and stand there with a clicker counting the trucks in. [E&Y – the auditors – should do this pronto. The longer they delay the more their potential liability.]

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