The Best Performing Assets In November And 2012 YTD

Tyler Durden's picture


Remember when fundamentals mattered? Neither do we, and why should they: the New Normal market has long since stopped pretending to be able to discount a future that is entirely politically driven, and thus irrational, and the only thing that matters is being able to respond as fast as possible to blinking red headlines. This explains the best performing asset classes on November: at the very top, something one would never expect to see - the Nikkei, which soared on "hopes" the return of politician Shinjiro Abe would mean the nationalization of the BOJ, 3% inflation targeting, and a surge in monetization. And while this is good for Japanese equities, it would crush all local banks who hold the bulk of their assets in JGBs, which would in turn plunge, and likely result in another bank sector bailout, no to mention annihilate pension funding for tens of millions. But such is the new normal.

Also at the top: DJStoxx, BTPs, EU Fin Subs the DAX and other European exposure, on hopes Europe's taxpayer is warming up to bailing out the local financial sector, just to preserve the Eurozone, the EUR, and the jobs of various politicians, tightly enmeshed with the future of the failed monetary experiment. Completing the top performers was silver (and Brent) because when politicians are seen as catalysts for market upside, this can only mean one thing: a total collapse of the whole house of cards eventually. And yes, Brent was up there too, due to both eventual inflationary and geopolitical worries. As to the best performing asset YTD? Wheat. It's edible, but deflationary when hedonically adjusted. Or so the Econ PhD's say.

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Mon, 12/03/2012 - 11:32 | 3029647 saveandsound
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Mon, 12/03/2012 - 11:43 | 3029673 Schmuck Raker
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Sadly, I lost all my Greek Athex shares in a boating accident just last week.

Mon, 12/03/2012 - 11:33 | 3029650 IridiumRebel
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Mon, 12/03/2012 - 16:32 | 3030628 IridiumRebel
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I down voted me too so we can all be assholes!

Mon, 12/03/2012 - 11:39 | 3029662 IridiumRebel
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All I want for Christmas is my silver rounds....silver rounds...silver rounds......

All I want for Christmas is my silver rounds....silver rounds...silver rounds......

Mon, 12/03/2012 - 14:00 | 3030130 SilverDOG
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Dear Santa,

Please place Canadian Maple Leaf monster boxes in the safe.

Extra cookies and reindeer feed on the table.

Mon, 12/03/2012 - 11:39 | 3029663 tooriskytoinvest
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The Global Economy Has Done A Complete 180, Now It's The US' Turn To Be Weak. ISM MANUFACTURING FALLS TO 49.5 (Analysts Expected 51.4)!!! Differences Between First Half Of Year And Remaining Half Are Very Dramatic

Mon, 12/03/2012 - 13:35 | 3030046 LeisureSmith
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Playing the biannual transatlantic economic weakness tag ey? tag you're it.

Mon, 12/03/2012 - 11:59 | 3029716 LawsofPhysics
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 go long black markets, agriculture, personal security companies (a.k.a. gun manufacturers) and anything that central banks and paper-pushers cannot devalue.

Mon, 12/03/2012 - 12:13 | 3029772 ejmoosa
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SWHC....up 323% over the last 12 months. 

Mon, 12/03/2012 - 12:16 | 3029783 haskelslocal
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A little game theory.

If you were asked to choose from the chart, where would you buy for 2013?

Would you be 2012 contrarian and choose the bottom end of the chart as being profitable for 2013?

Or would you buy off the top end expecting a continued run?

Would you also step off the end points to lessen risk (chose something in positions 3-4 as opposed to 1 and vice versa) but also lower return potential?


Mon, 12/03/2012 - 12:21 | 3029823 LawsofPhysics
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Please stop.  There are no markets anymore.  No respect for capital either.  Thank your central banks for that.

Mon, 12/03/2012 - 13:04 | 3029963 Super Broccoli
Super Broccoli's picture

i wonder if a peacefull world should result in a petro-dollar collapse :-)

Mon, 12/03/2012 - 13:37 | 3030054 Triple A
Triple A's picture

well i guess Spain is fixed...

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