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Frontrunning: June 22

  • Nervy global investors revisit 1930s playbook (Reuters)
  • Stocks Trade Near Week High Before Brexit Vote; Commodities Gain (BBG)
  • Yellen May Face Tougher Crowd in House Appearance (WSJ)
  • In SolarCity Bid, Tesla’s Musk Targets Customers Wanting All (BBG)
  • Trump to detour from campaign to visit Scotland golf properties (Reuters)

Panicked Brits Rush To Buy Gold Bars, Stuff Them In Home Safes

Worried British savers are scrambling to buy gold bars and "stuffing them in safes at home, data suggests, as fears mount that a Brexit-induced financial meltdown could be just around the corner." The paper cites Google search data for the term "home safe" which is running 61% higher than the level at which it peaked in November 2008, the point of the financial crisis, and is now higher than at any point since. In other words, whether intended or not, locals are more terrified of the outcome of Thursday's vote than the near-collapse of the financial system in the aftermath of Lehmans' failure.

Fed Congressional Testimony Preview: Janet Yellen's Shot At Redemption

Google "The Fed" and the search engine will offer to autofill your query with "surrenders," reflecting market concerns that The Fed has abandoned its recently more upbeat take on the domestic economy. During this week's semiannual monetary policy report to Congress, the success/failure of this appearance will hinge on the tone she chooses to strike and the conviction investors hear in her testimony and in Q&A. With so much chatter about the Fed “Losing credibility” with markets, this will be an important chance for Chair Yellen to set the record straight.

Mrs.Watanabe Defies The BOJ Once Again While Betting On Robots

As the BOJ continues to load up on Nikkei ETFs in hopes that the rest of the market will be faked out and buy Japanese equities, Mrs. Watanabe continues to be a nemesis. In addition to being in the market for DM government bonds, Japanese investors are also piling into Nikko Asset Management's Global Robotics Equity Fund, which would be fine with the BOJ, except that only a third of the fund is allocated to Japanese equitites.

Dogshit & Sugar-Tax In Philadelphia: "The Stupid, It Burns"

Dog shit and sugar taxes tell you everything you need to know about the corrupt Philly politicians and people living in West Philly. A match made in 30 Blocks of Squalor heaven. There is no solution. This city is too far gone. The people of West Philly have been indoctrinated into this lifestyle over generations. It will eventually end in tears when the city goes bankrupt and the welfare money dries up. Then it will burn.

How The Welfare State Dies

Brexit has diverted attention from another little drama playing out in Europe. As of the time of writing, if you Google Hollande threatens to ban protests or variations thereof, you will find Russian, South African and even Iranian press reports on the topic. Otherwise, it’s basically crickets (sole exception: Politico).  Gee, we wonder why? Those who elected Mr. Hollande did so because they expected him to deliver the loot. His problem is that he’s running out of stuff to loot.

Why Google Is Sliding

"We recently conducted checks with two leading search engine marketing (SEM) agencies/platforms, which in aggregate have visibility into ~$5 billion in annual search spending (the vast majority of which, of course, is on Google). At a high level, these early data points suggest that a slight deceleration in the y/y growth rate for search marketing spend in 2Q16 vs. 1Q16 is possible."