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

Bears are out in force again but are they right?

In the old cowboy movies the hero would get nervous because it was “too dammed quiet out there” and that is certainly the way people are feeling at the moment. There is a whole raft of commentators pointing out that … Read More

Posted in Equities | Leave a comment

What the last 25 years demonstrates – there is no such thing as a risk free return

How things have changed in 25 years This week saw the 25th anniversary of the shocking events in Tiananmen square, with large scale memorials in Hong Kong and Taiwan in particular. The popular protests against Communist rule were echoed across … Read More

Posted in Asia, Banks, Risk | Leave a comment

Foreign direct investment story not helped by tensions in Thailand and anti Chinese protests in Vietnam

Political tensions in Asia are in focus this week as two relatively long standing issues – China’s territorial disputes with Vietnam and the anti-government protestors in Thailand have both escalated at the same time. While the spark may have been … Read More

Posted in Asia | Leave a comment
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