The delisting threat might backfire: Yuan’s on the road to become a globlal currency

The White House has shown that it is ready to use delisting of Chinese companies as a new weapon in the trade war. However, that might be a catalyst for the acceleration of the paradigm change in the financial markets. Several countries are already pursuing alternatives to the international payments system based on the USD.… Read More The delisting threat might backfire: Yuan’s on the road to become a globlal currency

The Bubble’s Dynamics Point In One Direction: Gold

Article orginally published on seekingalpha.com Photo credit: ines s Summary The current market dynamics point towards a crisis. The end result should be more monetary easing. When the printing press is working, usually, there’s at least one asset that performs very well. Investment Backdrop The current market dynamics have become clear, to me, during the… Read More The Bubble’s Dynamics Point In One Direction: Gold

European equities seem to offer relative value, but that’s a trap

Using the S&P 500 (SPY) as our reference, we get several positive value indicators for the STOXX 600. China and the US are at the forefront of the tech race. Europe has fallen behind very significantly. For that reason, European equity indexes will perform structurally worse than their US counterparties. (Source: DennisM2) Scanning the global… Read More European equities seem to offer relative value, but that’s a trap

Trump is playing the stock market, and that ought to end in tears

Trump has been dropping trade bombs on the rallies, and pumping hope on the selloffs. So far, it has resulted in a collar. Trump defines the cap, while the Fed provides the floor. However, soon or later when, the majority of market participants get the trick, the beast will break the spell. (Source: Gage Skidmore)… Read More Trump is playing the stock market, and that ought to end in tears

Baidu in a glance

Baidu (BIDU) is presently going through a bearish phase, mainly due to: i) The trade war, ii) Macro slowdown in China, iii) Mounting competition in the Chinese internet sector. That has led to an increase in short sellers, which resulted in a price slump. Graph 1 – Percent of shares outstanding short (Source: YCharts) Baidu’s… Read More Baidu in a glance

Trump’s trade war isn’t a sign of strength, it’s the opposite

Photo credit: Richard Mortel After World War Two, the US was the chief creditor nation of the world. Before the war, the country had a minor role in establishing the world order. However, after the war, the US enjoyed a stable political landscape, the most advanced technology, intact infrastructure back at home, and an enviable… Read More Trump’s trade war isn’t a sign of strength, it’s the opposite