• 4 days Earnings Season Might Bring Relief to Battered Tech Sector
  • 6 days Banking Stocks Could Be Set For Another Bumper Year
  • 7 days Crypto Mining Migration Continues As Bans Line Up
  • 8 days The Meme Stock Craze Could Lose Out to Crypto
  • 11 days Banking Sector Booming As Stock Market Lags
  • 12 days Has Bitcoin Stopped Bleeding? Some Analysts Seem To Think So
  • 12 days Amazon ‘Competitor’ Charged With Crypto Fraud Scheme
  • 13 days As Competition Heats Up, Cable TV Mega-Merger Revived
  • 14 days China’s Road To Tech Independence
  • 19 days 3 Major Bearish Catalysts For The U.S. Economy In 2022
  • 21 days VR Industry Boomed During Holiday Season
  • 21 days 3 Global eCommerce Brands Have Overtaken Amazon
  • 22 days Another Banner Year for Billionaires
  • 26 days Top 3 Predictions For Bitcoin In The New Year
  • 28 days China Moves To Tighten Rules For Companies Looking To List Abroad
  • 29 days Fake Reviews Go All The Way To The Top
  • 35 days Airlines Want The Government To Ditch Emergency Testing For Covid-19
  • 36 days The Service Robot Industry Is Booming
  • 40 days The 3 Biggest Market Risks In 2022
  • 50 days DIDI Delisting Is A Worrying Sign For Investors Holding Chinese Stocks
  1. Home
  2. Markets
  3. Other

Playing Another Hand of Existential Poker

"Do the times make the man - or does the man make the times?"

1980-1983 SPX versus 2008-2013 Shanghai
Larger Image

Yen GDX Chart from weekly data
Larger Image

USDX 1994 versus USDX 2013 (weekly)
Larger Image

If we're reading the rules correctly, at this point in this existential zero sum game of disinflation, deflation and reflation - both Xi's manifesto and Bernanke and Yellen's taper talk - trump Shinzo's Abenomics.

For those not following at home:

  • The dollar has historically declined when the Fed moves to constrict extraordinary monetary policies.

  • Japan has tangentially expedited disinflationary trends overseas in the past year through a weakened yen. We expect that trend to reverse.

  • China is breaking out of its long-term consolidating range. World-wide growth should accelerate, as well as broader reflationary trends.

  • Commodities, commodity currencies and emerging markets should benefit disproportionately from China's reemergence.

Generally speaking, while we recognize the significance of having a commanding face to the story, we're more in the, "Times make the man" camp. With that said, we're happy to report our better halves will soon be represented at the monetary pulpit, but will also likely receive both unwarranted praise and criticism.

Hopefully for Dr. Yellen she receives the Volcker treatment.

2008-2009 Shanghai versus 2008-2013 Shanghai (Daily)
Larger Image

2009 Emerging Market Equities (EEM) versus 2013 Gold (GLD) - Daily
Larger Image

2009 Gold (GLD) versus 2013 Emerging Market Equitites (EEM) - Daily
Larger Image

2009 TIP versus 2013 TIP - Daily
Larger Image

2009 EEM:TIP versus 2013 GLD:TIP - Daily
Larger Image

Australian Dollar 2008-2009 versus 2013-2014 - Daily
Larger Image

2009 Silver versus 2013 Australian Dollar - Daily
Larger Image

2009 Australian Dollar versus 2013 Silver (SLV) - Daily
Larger Image

 

Back to homepage

Leave a comment

Leave a comment