Algos and ETFs might give stock pickers a new life

Summary Algos and ETFs became a significant part of the market infrastructure. That has changed the market rhythm, and it has amplified certain behaviors. Those changes might be the opening that stock pickers needed to be back on the action. Picture: DocChewbacca Algorithms have been responsible for changing the market rhythm. We have become accustomed… Read More Algos and ETFs might give stock pickers a new life

We Are Heading Into Another Minsky Moment

Summary Stability is perceived as something positive in financial markets. However, too much stability breeds complacency and risk leveraging, which results in instability. We are headed to one of those rollercoaster moments.   Most people think that financial stability is good. Actually, stability is bad for financial markets. Long periods of stability tend to provoke… Read More We Are Heading Into Another Minsky Moment

Alibaba: The Christmas rout brought a risk/reward gift for bold investors

China is still one of the fastest growing economies in the world. Even the weakness provoked crackdown on debt should be a long-term positive. E-commerce is still one of the most disruptive sectors in world’s economy, and Alibaba is a giant in this space. The current market rout has brought a severe price decline, and… Read More Alibaba: The Christmas rout brought a risk/reward gift for bold investors

The Fed rate decision is a tipping point for the Global economy

Summary The quantitative tightening and interest rate hikes have had a negative effect on the world economy, except in the US. A further hike would end up putting even more pressure on EM economies. Sooner or later, that will spill over to the US. Financial turbulence is also suggesting that the tightening is going too… Read More The Fed rate decision is a tipping point for the Global economy

Macro Observations: The trade war doesn’t mean a trade surplus

Photo Credit: PAS China President Trump has been promoting a trade war with China. His defenders argue it is time to rebalance what has been a win-lose trade relationship. Although there are positives in getting cheap goods from China that the trade balance can’t capture, it is true that China’s long growth spree should be… Read More Macro Observations: The trade war doesn’t mean a trade surplus