Archive - May 2014 - Blog entry

We are witnessing implied volatility on all asset classes simply collapse to the lowest levels witnessed in 20 years, or at least the lowest levels achieved prior to the GFC in early 2007.

The Secretary will be too busy with critical engagements and "Major Major never sees anyone in his office while he's in his office."--Catch 22

Many of you remember Total Recall; but what about TotaL ReBulB?

Geithner Is Taken to the Woodshed

Today Korea is one of the most economically and technologically advanced nations on the planet, but it wasn't always like that. Merely fifty years ago it was one of the poorest places on Earth.

The easing of the Indian import rules is bullish for gold and the gold sector. Shares of jewellery companies surged after the RBI allowed banks to provide gold loans to the sector. The moves by the RBI, is likely to increase demand for gold. Curiously, gold prices saw little gains after the announcement.

And the endless quest...

The Bitcoin space is heating up so quickly that not only are hundreds of millions of dollars being funneling into startups, PayPal has introduced a product that actually undercuts Bitcoin payment processors! Uh Oh Visa/Mastercard! Margin compression, here we come!

A steep yield curve induces investors to borrow at cheap shorter rates and buy riskier assets to earn a spread.  Party on while the Fed provides the punch bowl.  Maybe this time the volatility will come even before the Fed eases off the pedal?

U.S. demand for coal has fallen in recent years and export has become ever more important to domestic coal producers.  Asia is the obvious export target, but challenges abound.

The bells are ringing for the markets, but few are noticing.

Retaliation for the indictment of five Chinese military officials accused of hacking into Corporate America? Nope. This is much more serious.

Step right up...

Kipling's "The Gods of the Copybook Headings" is true.