MMT is attracting a lot of attention due to the proximity of the 2020 Presidential election At its core, MMT assumes a different money origin, which has repercussions in the way we interpret budget deficits and debt. The theory is an interesting exercise, but the risk of turning sour should make it unfit to be… Read More MMT is a cool, dangerous idea
In hindsight, it seems like Mark Bristow used the opening provided by the Newmont (NEM)-Goldcorp (GG) merger, to force a Barrick (GOLD) controlled Joint-Venture. The last couple of months have been heated in the gold industry (GLD), with the Barrick-Rangold merger taking the spotlight, followed by the Newmont-Goldcorp deal. Once the Newmont-Goldcorp deal was announced,… Read More Barrick and Newmont reached an interesting deal
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
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
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
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
Maybe a more suitable title could have been: “Does trend-following being profitable makes sense?” Many traders don’t care about the reasons why they achieve profitable strategies out of trend-following techniques. They don’t want to know. For them, it suffices to keep making money out of them. For me that doesn’t work, I need to understand the… Read More Why does trend-following work?