Global Macro Perspectives
I’m puzzled by the market action in recent days. It fells that something is wrong, but I major move down doesn’t seem probable. The news and blogosphere are full of stories on Mr. Bernanke and AIG/Goldman Sachs/Societe Generale unwinding. Both are neither interesting neither useful in investing. Who cares what happened more than year ago, […]
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 […]
After sleeping it off and giving a little tough on Barack Obama’s proposal of new financial regulation I still think this is HUGE. Because it is so HUGE, I have some doubts how the final version would look like. Similar as with health care reform, a strong opposition backed by almost unlimited (lobbying) funds will […]
The focus on China continues. China statistic bureau reported China economy grew 10.7%. Bloomberg story: China’s GDP Growth Accelerates to Fastest Since 2007. The market focused on what wasn’t told in the report. Apparently the press release was missing the references to keeping “moderately loose monetary policy” and a “proactive fiscal policy”. The intense to […]
All the fuss today on a news that China maybe has started to slow down the credit growth. WSJ story: Bank of China to Take Steps to Rein In Loans. We have so many alerts coming from various data points and the market reacts violently on this kind of news. Equity was down, bonds an […]
We have first numbers for the Black Friday shopping season start. The number of people shopping increased to 195 million from last’s year 172 million; they have spent $42. 2 billion vs. $42 billion last year which translates into $343 per shopper vs. $372 last year. Nothing new here, the shift to buy discounted merchandise […]