Last week ended with the #VIX closing at 13.49, well below its ~19.50 long-term average, while the CNN “fear and greed” index closed at 40 in “fear” territory. Warren Buffett disclosed his cash “war chest” grew to 189bn #USD and socials have been fantasizing all over the weekend about the…
Category:Stocks
WHY UNDERSTANDING CENTRAL BANKS’ ACCOUNTING IS IMPORTANT TO UNDERSTAND THE CONSEQUENCES OF THEIR ACTIONS (ESPECIALLY THE BOJ ONES)
Yesterday, I got this interesting question that I believe the answer is worth sharing with everyone: why does the #BOJ balance sheet decrease when the #BOJ intervenes in the FX? And why doesn’t that mean there is less liquidity in the global system? Understanding central banking accounting is the key…
THIS LAST BURST OF QUANTITATIVE EASING WILL ACCELERATE THE OVERALL MONETARY IMPLOSION ALREADY UNFOLDING
Yes, quantitative easing is what just happened under everyone’s nose. The #JPY interventions of this past week effectively injected about 100 billion #USD into the global financial system that previously was not circulating. Why? Because #Japan MOF selling reserves to fetch #USD that can then be sold in the market…
EXPLAINING AND SIMPLIFYING THE JPY (COUNTERINTUITIVE) “DOOM LOOP”
Last week, I ventured a bit too deeply into the plumbing of the global financial system with the article “THE JPY (COUNTERINTUITIVE) DOOM LOOP – THE MORE JPY LOSES VALUE, THE MORE LEVERAGE IS FORCED TO COME OFFLINE, THE MORE THE JPY LOSES VALUE” and I apologize to all those…
EVERYONE IN UBS IS LOOKING FOR A LIFEBOAT TO ESCAPE THE SINKING TITANIC
As I warned about many times before (#UBS ENCORE SERIES), the rescue of Credit Suisse was surely going to put #UBS in great danger and, as expected, the bank is now going through an existential crisis. The extent of the existential crisis was already clear in their Q4-23 results, where…
GOLDMAN SACHS CASH BLEED WON’T ALLOW THEM TO KEEP HIDING THEIR LOSSES FOREVER
Goldman Sachs just released its Q1-24 results and, of course, they beat expectations. Nothing less could be expected from the “best in its league” right? Well, if you pay attention to details, #GS financials are less and less shiny (and increasingly worth paying attention to). Once again, #GS cherry-picked the…
HOW TO MANAGE YOUR INVESTMENTS AND FINANCES RISK WHEN YOU GET CAUGHT TOTALLY UNPREPARED
Observing what happened in the past 72 hours was very fascinating, to say the least. First, pretty much no one gave credit to Iran’s threats, then no one gave credit to US administration warnings and ultimately, when Iran pulled the trigger, everyone quickly dismissed the risk of a retaliatory strike…
GET READY, INSIDERS TOLD ME A HORRIBLE BANKS’ EARNINGS SEASON IS ABOUT TO BEGIN
JP Morgan, Citigroup, Wells Fargo, and State Street will all kick off Q1-24 banks’ earnings season on Friday (or today for those of us based in Asia like me) before US #stocks cash trading opens. As I mentioned in my article earlier this week (link), for Q1-24 banks are already…
WHILE YOU WILL BE WAITING FOR THE US-ELESS CPI, IT LOOKS LIKE “SOMEONE” IS AT RISK TO BLOW UP (AGAIN)
What the hell happened at 10:22 AM Eastern Time? Something snapped, and you can see that without a shadow of a doubt in the #VIX chart. However, as you can see, I highlighted a smaller snap that occurred right at the start of US #stocks cash trading. At the very…
STOCKS’ PURSUIT OF HAPPINESS: IGNORE EVERYTHING, EVEN THE BASIC LAWS OF FINANCIAL GRAVITY
The discounted cash flow (DCF) valuation model is a fundamental tool used in finance to estimate the intrinsic value of a company based on its expected future cash flows. It is based on the “time value of money” — the basic law of finance (a dollar received in the future…