What are the differences between #Bitcoin and #Gold? If you put aside any personal views and stick with their pure characteristics, the two are not truly different from a monetary perspective: 1 – Both have limited supply, but at the same time, they can be divided into very minuscule units….
WHY IS #JAPAN SO SCARED ABOUT $JPY CROSSING 152 AGAINST THE $USD?
Crossing a specific FX level isn’t usually a “big deal”. What would be the difference for a country between settling payments at 151.95 or 152.05? Intuitively, it’s quite small. However, there are 2 specific markets where a “round number” can be a very big deal: derivatives and margin lending. Why?…
A LESSON FROM #CHINA’S MIDDLE CLASS: PAY YOUR DEBTS UNTIL YOU CAN AFFORD TO DO SO. THE ALTERNATIVE? DEBT SLAVERY
There are times when I believe that if there wasn’t a massive cultural and language barrier between #China and the major Western countries, in particular with the #US (while #Germany would love to deal more with #China commercially if they still had the option to do so), both parts of…
CAREFUL ABOUT RECEDING TIDES, A TSUNAMI MIGHT BE ABOUT TO HIT (#STOCKS)
On Monday, the overall volume traded on the S&P500 was about 50% of the average daily volumes of the past 3 months. What about the Nasdaq100? Incredibly, the volume traded on the index on Monday was ~14% of the average traded volume of the past 3 months. Let’s look a…
IS #CHINA ABOUT TO HIT #US WHERE IT WILL HURT THE MOST?
Since last Thursday, a strange tension could be sensed on trading floors in Hong Kong and China, then on Friday, the $CNY suddenly sold off against the $USD. While the event has been greatly overlooked so far by investors, it might have been a pretty loud warning about the next…
WHY A HISTORICAL $JPY CURRENCY CRISIS IS AT THE DOORSTEP OF #JAPAN
Imagine you hold an asset of any type. At the moment, the asset XYZ is worth 1M$ according to the price quoted on the exchange. Now, what would be your instinctive reaction if you suddenly discovered that your asset XYZ is instead worth 100k$, but you can still go to…
THE NEW #FOMC MANDATE IS NOW OFFICIAL: SAVE THE #STOCKS BUBBLE AT ALL COSTS!
Let’s give a round of applause to Jerome Burns (aka Jerome Powell) for his incredible confidence in saying things like “#inflation is showing some seasonality that doesn’t change its downward trend”. First of all, can someone remind him that what he has been commenting on in the last 6 years…
“Oops!… I did it again!” – #BOJ DANGEROUS SCHIZOPHRENIA
The Bank Of Japan (#BOJ) attempted to have its cake and eat it too, again, but this time, they didn’t have the luxury to do so anymore. The #BOJ had to decide which one to save between Japan’s economy and the global #stocks bubble, as we discussed last week (article…
THE WORLD ECONOMY DESPERATELY NEEDS A NEW PAUL VOLCKER
I believe we now all agree the #inflation genie, or perhaps “devil,” is back with a vengeance. Who could have foreseen that? Well… I did 3 months ago ( “The Real Fight Against #Inlfation Has Not Even Started Yet” ), but most people were too busy getting drunk on the…
ARE WE GOING TO SEE THE #FED FIREFIGHTING A #BOJ HIKE THIS WEEK?
This week we are going to have such a parade of central bank decisions on the menu: #RBA, #BOJ, #FOMC, #BOE, and #SNB 😵💫 All eyes will surely be on the #BOJ and the #FOMC. I do expect they will play “good cop bad cop” with market emotions. 🤭 The…