The Alibaba roadshow runs into town but is it worth 20 times the $8bn it is aiming to raise?

This week in Hong Kong is one of the busiest of the year for the equity community. The giant CLSA conference is in town with hundreds of companies and literally thousands of investors attending from all over the world. This … Read More

Posted in Asia, Shares | Leave a comment

Conspicuous consumption going out of fashion in China

In the last Market Thinking, I discussed the euro against the dollar, pointing out the likely conclusions that chart followers might draw from the apparent reversal of the euro strength from the lows of 2012. The moves by the European … Read More

Posted in Commodities, Currency, Luxury goods | Leave a comment

Jackson Hole – and the expectation of Eurozone QE – has been the real driver of markets

The extended Labor Day weekend in the US traditionally marks the end of summer, and markets returning will find a very crowded calendar of US data this week, most of which is likely to surprise on the upside. However, the … Read More

Posted in Quantitative Easing and Extraordinary Monetary Measures, Uncategorized | Leave a comment

Short Russia, long China emerging as a trading strategy

The uptrend in equities looks intact, but the early August weakness suggests room for a short term correction. As is often the case in August, this looks more like a buyers strike than any real selling by long term investors, … Read More

Posted in China, High Yield, Russia, Shorting | Leave a comment

Equity investors wise to sit back and ignore US economic numbers except for impact on monetary policy

The strong US GDP numbers this week are to a large extent an unwind of the weak, weather affected Q1 numbers, but nevertheless economists who busily downgraded after Q1 are upgrading again and the noise traders are duly jumping – … Read More

Posted in US economy | Leave a comment

The time may have finally come for electric cars and solar power

The current rally in the Hang Seng Index (HSI) is partly an extension of a move that began in late May as the market recovered from over sold conditions and concerns over China, although this week in particular it has … Read More

Posted in electric cars, Solar | Leave a comment

Asia vulnerable to interest rises with parallels to Europe ten years ago

Markets remain thin and nervous, the horror of the Malaysian airlines story only just starting to percolate through Asia on Friday. US Banks have surprised on the upside, prompting a switch (it seems) out of European banks. Gold is up … Read More

Posted in Asia | Leave a comment

Both Modi and Jokowi face the challenge of ending a subsidy culture

The idea of a successful state governor becoming leader of a country has obviously excited international investors in Indonesia in a similar way to how it did in India. For Modi read Joko Widodo, known as Jokowi, the governor of … Read More

Posted in India | Tagged | Leave a comment

Japan’s reforms may be starting in earnest – and valuations are at 2012 levels

Markets have been a bit flat this week, likely settling down ahead of the holidays and the end of the quarter. The last month has seen the best performance from laggards, particularly in Asia and a feeling that the US … Read More

Posted in Corporate Governance, Japan | Leave a comment

Hedge funds and bonds trounced by unleveraged exposure to equities in the last five years

Despite the new round of turmoil in Iraq dominating the headlines this week, equity markets have made a series of new highs, puzzling those who have grown used to the concept of ‘risk off’ in response to anything unpleasant.  The … Read More

Posted in Equities | Leave a comment
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