Asia: What to do about bonds?
Many of us are keen to invest in Asian bonds - but don't quite know where to turn to, given the relative dearth of paper. Step in a relatively liquid ETF that can help to solve your problem. I have not invested in them, just so that you know, but I thought it useful to point this instrument out.
Topics Covered
- Going long of Asian bonds
- How to make money off this
Macro-Catalyst: So what do I do now?
Recent market turbulence was festooned with the World Bank downgrading her global forecast Going beyond yesterday's market perturbations, what is your next profitable step?
Topics Covered
- Outlook for the Economic Time®
- How to make money off these ideas
China on North Korea: "Don't do something, stand there!"
Whilst everyone is focusing on the scarily exciting events in Iran, let's not forget that plenty is happening back stage on North Korea. We have put out a variety of pieces on this subject, most recently suggesting an investment course of action. Today we go back stage and scrutinize China's role: she has been conspicuous in her absence. But why so "absent"?And how to earn off her "absence"?
CNBC Appearance of 18th June 2009
Disregard the title under the picture; this time, I am talking about reforming America's financial system, not about the Thai baht!
Have a look at my critical views of Pres. Obama's recent financial re-regulation proposals. Sounds like once this gets to Congress, he will become a cat on a hot tin roof, what with those vested interests snapping at his heels. Read this week's Economist leader and artcle (p. 13 f. and 67 f., respectively) for a particularly trenchant view on this hot air.
USA: how to earn off glum Treasury bond news
We recently hit out at the questionable view that inflation is relevant to current investment strategies. Not so. That is the good news. Then there is the not so good news regarding America's debt and her reserve currency - and a way to keep profiting from this glum news.
Topics Covered
1. Down, down, down
2. Treasury and thus reserve currency concerns
3. How to make money off this idea
Global: Investment Strategies for Deflation
Macro-Catalyst: How to make money of North Korea
We all know what is happening, so we just present some ideas for you to trade on.
Topics Covered
With the North Koreans now threatening yet another missile test, tensions have to rise. We link this to Obama's disputes with Iran and Israel. So we are dealing with a tricky triangle, to force an alliteration on you. Tensions have to keep mounting, meaning that markets will get nervous and head south.
Here are some ways to make money off these tensions:
- Sell the yen. With rising markets since March, the yen has fallen. This makes sense: people are putting on carry trades using the yen as their zero-finance vehicle. If tensions were to keep mounting, so my guess is that markets will drop. That reduces risk, so people put on more market shorts, using the yen to finance these, and that depresses the yen even more.
- Buy Swiss Francs. Here is a safe haven play in the currency arena. You all know about it. Since we recommended buying this ETF on 27th October 2008, it has risen by 7.2%
- Buy gold. You know that when tensions rise, gold is a favoured haven. The same goes for this time. Since we recommended the ETF, PHAU:LN, on 15th November 2007, it has risen by 17.3%.
- Buy aerospace and defense stocks. One relevant ETF is ITA:US. It has outperformed the S&P500 since the more recent bull run of 3rd March 2009 and - sadly - should continue outperforming.
US: Bogus bank profits = lipstick on pigs
Readers know that we have warned of the de-stocking going hand-in-hand with de-leveraging in America. Indeed, we predicted earlier this year that America's inventory cycle would bottom around this May i.e. around now, and that this would propel markets up later on in 2011 on a structural basis. The current rise in markets is a bubble waiting to burst. We now return to this theme, focusing on recent lobbyists' lullabies in Congress...and wonder whether their subsequent changes in this "democracy" are nothing more than putting even more lipstick on a pig.
Topics Covered
- Pork inflation
- External valuation morphs into internal volition
- Lipstick on pigs
- How to make e money off this
