Author Archive: Jeremy Parkinson
China’s Tetralemma
Many countries have three policy objectives: (1) being able to set their own monetary policy, in order to keep their own inflation and unemployment at desired levels; (2) having a stable exchange rate, in order to avoid disruptive shifts in exports or imports; and (3) allowing free capital flows, in order to help the country’s […]
Biotech Sector Leads Market Early In 2017 Despite Uncertainties
Biotech Sector Leads Market Despite Slowing Trump Pro-Growth Agenda Biotech Themes and Clinical News Still Motivate Investors Drug Price Growth Expected to Slow in Coming Years Despite recent weakness over the past month the biotech sector has continued to outperform the market. This may surprise you because of all the focus since the election on […]
Weighing The Week Ahead: How Should Investors Cope With Geopolitical Risk?
Last week I suggested that the market might be ready for some real news—corporate earnings. That is still a key topic, but attention is focused on world events. Pundits will be asking: How Should Investors Respond to Geopolitical Risks? Last Week Last week the economic news was good, but mostly ignored. Theme Recap In my […]
An Important Breakout And Vindication For Silver Speculators
Last week, I noted that silver speculators returned to “maximum bullishness” but warned… “Just like the plunge on March 2nd, the key for SLV is the follow-through. On March 3rd, a small relief rally fell short of 200DMA resistance; two days later SLV gapped down on its way to a 50DMA breakdown. I am guessing […]
Fate Of Turkey’s Stock Market Is In The Hands Of An Algo Named “The Dude”
I mean, didn’t you notice on the plane when you started talking, eventually I started reading the vomit bag? Didn’t that give you some sort of clue, like hey, maybe this guy is not enjoying it? You know, everything is not an anecdote. You have to discriminate. You choose things that, that are funny or […]
The Vanguard High Dividend Yield ETF Is Looking Like A Buy Again
Just when the Fed zigged, the treasury yield curve zagged. The widely expected March interest rate hike was supposed to help push fixed income yields higher too but then the opposite happened. Treasuries rallied on the news and the yields ended up dropping. So what happened? My take is that the market got a little […]
Forex Ranking, Rating And Score For Week 16 / 2017
The Top 10 of the Ranking and Rating list for the coming week shows the following stronger currencies being well represented for going long: the JPY(5X) followed by the AUD(2X). The weaker currencies are the EUR(4X) followed by the CHF(3X). A nice combination for coming week may be e.g: EUR/JPY with the AUD/CHF CHF/JPY with the EUR/AUD Ranking […]
(Almost) $400 Billion Weighs In On Tax Reform, The Fed, And The Dollar
Bank of America’s latest rates and FX survey comprises responses from 74 fund managers with $368 billion in AUM. In other words, hopefully these folks are some semblance of smart and/or prescient, because if they aren’t, well then there’s nearly $400 billion in possibly misallocated capital floating around out there. There’s some sarcasm there. Most of the folks surveyed have […]
US Dollar Eyes CPI, Liquidity Drain May Boost Knee-Jerk Volatility
Talking Points: G10 FX marks time Good Friday market closures drain liquidity US Dollar may edge lower if US CPI falls short of expectations Thin liquidity conditions may amplify knee-jerk volatility threat The major currencies marked time in Asian trade as liquidity levels diminished amid market closures for the Good Friday holiday. Bourses in Australia and […]
Congress Panics As US Oil Assets Could Fall Into Russian Hands If Venezuela Defaults
As we noted last night, Venezuela’s state-owned oil company PDVSA made principal and interest payments of $2.2 billion today, avoiding default yet again despite what Vice President Tareck El Aissami called a “ruthless economic war” being waged against the Maduro government. That’s the good news, the bad news is that PDVSA has $62 billion more in principal […]
