Riding The QE Wave

Whilst it is an open question as to whether QE and monetary stimulus is helping the global economy (I don’t believe it is), there is no doubt that stock markets love it. And that’s where all this central bank “free money” is heading. Global stock markets are riding the QE wave. The Shanghai Composite […]

By |March 17th, 2015|Business, Central Banks, China, Europe, Japan, Markets, United States|0 Comments

Deflating Japan

After today’s avalanche of economic data from Japan, can anyone seriously believe that 2 years of “Abenomics” has been a success? On the contrary it has simply failed to deliver what it promised which was an increase in growth and inflation. Today’s numbers show Japan perilously close to outright deflation with January year-on-year inflation […]

By |February 28th, 2015|Business, Economics, Japan, Markets|0 Comments

Super Mario Goes Ballistic

Now that Super Mario has fired his monetary bazooka, we should take a step back and see who are the winners and losers so far in 2015. The first chart normalised to 1st January shows some of them. Oil (and other industrial commodities) are the big losers so far. US stocks are now flat year […]

By |January 23rd, 2015|Business, China, Commodities, Europe, Japan, Markets, Oil, United States|0 Comments

Is This The End Of The Carry Trade?

I have seen many graphics over the past week showing the effect of the shock action by the Swiss National Bank (SNB) on the EUR/CHF exchange rate. However, this one is my favourite (h/t Slope Of Hope ). It highlights perfectly the distortions being created in the market by the actions of the world’s […]

By |January 21st, 2015|Commodities, Economics, Europe, Japan, Markets, United States|0 Comments

Barmy Bonds

Today we’ve hit a new low in monetary madness. Overnight in New York the 10 year U.S. Treasury bond yield fell below 2% and at one stage sliced through 1.9% before recovering slightly to close at 1.94%. The result is that for the first time in history, taken together, the average 10 year bond […]

By |January 7th, 2015|Economics, Europe, Japan, Markets, United States|0 Comments