China drives Markets now … even Great Wall can’t shield us

watch china

If your intuition is being defensive, then our message should be well-received. Continue reading “China drives Markets now … even Great Wall can’t shield us”

China drives Markets now … even Great Wall can’t shield us

Monetary Boost to Mature Economies? As Realistic as Michael Phelps’ Crushing Another Olympics

Michael-Phelps

I actually met Michael Phelps back in 2006 when he was famous mostly among swimmers.

 

Our New York Masters Swim team had our grueling practices starting at 5:30am. Michael was visiting New York for a Speedo commercial shoot and he used our 50-meter Asphalt Green pool. The coach gave him a separate lane and we all were mesmerized with his cutting through the water.

Michael, obviously, went on to become the most decorated Olympian of all time, with a total of 22 medals in three Olympiads.

Beyond amazing!

He is/was amazing. But can he stay amazing forever? Of course, not! The age has many limitations…

What we easily accept in life we can’t comprehend in economics or markets. How can we blame a Monetary policy “of low or negative interest rates” for its inability to boost any growth?

Let’s take a Japan for being a relatively clean example.Of course, you realize that Japan has a shrinking population? Yes, the number of Japanese is, unfortunately, dwindling. Are countries with declining population even supposed to grow? Europe is not much better (especially, adjusted for immigration). But according to Central Bankers and monetary school economists they should, if only enough of monetary or fiscal stimulus would be injected!

Seriously? Would you believe that nonsense?

A country with declining population would have a contracting economy! To be more precise: a country with declining labor force would have a very low to negative growth. There is no way around it! No way around it!

Even if interest rates are zero forever. Like an aging Michael Phelps is not supposed to crush another Olympics. Not matter how much he practices or enhances his nutrition. Accept that mature economies are not supposed to grow the way they did in the 70th, 80th or 90th.

 

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Brexit…when a Widely Anticipated Event ever Surprised Markets?

brexit

Brexit… when a widely anticipated event ever surprised markets? Continue reading “Brexit…when a Widely Anticipated Event ever Surprised Markets?”

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Where Commodities Disagree With Bonds?

Norwegian yield curve

Here is what I can’t figure out: why are Yield Curves of countries with substantial dependence on crude oil production are still Inverted?  Continue reading “Where Commodities Disagree With Bonds?”

Where Commodities Disagree With Bonds?

Boost Your Investment Performance With Timing?

Traffic Light

During periods of low returns, eking out small advantages is critical.  Agreed? Continue reading “Boost Your Investment Performance With Timing?”

Boost Your Investment Performance With Timing?

Why Puerto Rico Is Our Greece?

Flags

Would Puerto-Rican crisis remind you of Greece’s situation 4 years ago?

Say Yes! Continue reading “Why Puerto Rico Is Our Greece?”

Why Puerto Rico Is Our Greece?

Summer Shopping in Europe? Buy Some Stocks There Too!

Shopping

I am not talking about that Europe would outgrow the World. No. Continue reading “Summer Shopping in Europe? Buy Some Stocks There Too!”

Summer Shopping in Europe? Buy Some Stocks There Too!