Stepping back from money management for a moment, Louis-Vincent Gave takes a big picture view of ongoing global developments and the implication for investments, from his perch in Hong Kong as CIO of GaveKal. The result is a treasure drove of wisdom on robotics, money velocity, Chinese reforms and the new asset-centric monetary system. To wit: "in the past few years, we seem to have embarked on a new paradigm in which our control engineer central bankers have decided that the value of assets must no longer be driven by a price that would be reached today, but instead by whatever best price a given asset may have reached in the past. This is a revolutionary change".
"In all likelihood, this manipulation will fail as every attempt at price manipulation since Diocletian’s Edict on Maximum Prices in the 3rd century. The only outstanding question is one of timing". Amidst this momentous change, a few asset classes offer some (relatively) safer harbour – "the RMB attempt to become a trading currency is potentially of the most important financial development... The creation of the dim-sum market may turn out to be a more important event than QE; even if few care and fewer still talk about it."
The attached e-book is gifted from Louis-Vincent and the GaveKal team to ZeroHedge readers, with best wishes for a profitable 2014!
Too Different For Comfort, by Louis-Vincent Gave (pdf)