“You’ve been living in a dream world, Neo. This is the world as it exists today. Welcome to the Desert… of the Real.”
The Matrix
The “Real” world, in which Western economies continue to stagnate (or flirt with outright recession), where unemployment remains sticky, record high corporate profit margins (built on cost-cutting) are vulnerable, and deflation is a still-persistent threat even as emerging markets break down, is a Matrix-like dystopia for long only investors.
A Sentiment Tipping Point
Invisible Hands
Chinageddon?
If shadow banking excesses were bad enough to warrant a PBOC response this harsh, how bad is the real problem?
which can be read here
Did China Whack Treasuries?
What’s the China connection?
ETFs Fuel Concentrated Bond Selling
That’s bad news for all kinds of yield-related asset plays. As bond yields rise, comparable yields look less attractive… and overbought names get sold. Then add in fears of capital gains loss, HFT pile-on, and ETF selling for a “fire in a crowded theater” effect.
Buy the Dip? No Thanks…
Now is an excellent time to start preparing the short roster.
Overbought ‘conservative’ yield plays look particularly vulnerable.
Strong bullish stance on the US dollar.
Expect more deflationary fallout for commodities – particularly oil.
Forget about gold, silver, and gold stocks.
Disclosure:This content is general info only, not to be taken as investment advice. Click here for disclaimer
The Matrix
The “Real” world, in which Western economies continue to stagnate (or flirt with outright recession), where unemployment remains sticky, record high corporate profit margins (built on cost-cutting) are vulnerable, and deflation is a still-persistent threat even as emerging markets break down, is a Matrix-like dystopia for long only investors.
A Sentiment Tipping Point
Invisible Hands
Chinageddon?
- China Signals More Inaction on Credit (WSJ)
- China’s Bonfire of Liquidities Claims First Victim (BreakingViews)
- PBOC Breaks Silence on China Cash Crunch (Financial Times)
- China’s Economy is Freezing Up… (Washington Post)
- China’s banks: The SHIBOR Shock (Economist)
- Shadow Banking Behind China’s Cash Crunch (NYT)
If shadow banking excesses were bad enough to warrant a PBOC response this harsh, how bad is the real problem?
which can be read here
Did China Whack Treasuries?
What’s the China connection?
ETFs Fuel Concentrated Bond Selling
That’s bad news for all kinds of yield-related asset plays. As bond yields rise, comparable yields look less attractive… and overbought names get sold. Then add in fears of capital gains loss, HFT pile-on, and ETF selling for a “fire in a crowded theater” effect.
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Buy the Dip? No Thanks…
Now is an excellent time to start preparing the short roster.
Overbought ‘conservative’ yield plays look particularly vulnerable.
Strong bullish stance on the US dollar.
Expect more deflationary fallout for commodities – particularly oil.
Forget about gold, silver, and gold stocks.
Disclosure:This content is general info only, not to be taken as investment advice. Click here for disclaimer