From Gotti today:
- The Saudi’s are selling stocks, led by global banks, to fund their deficit…
- International banks have been among the hardest hit in the movement out of shares…
- The repercussions from the low oil price means massive energy loan losses in the US banking sector…
- … if there is a global banking crisis the cost of overseas funds will rise…
- Australia is going to be hit hard by lower prices for iron ore and LNG…
- The CBA Bank is priced above its global piers partly because it pays much more of its profits out in dividends…
- The market believes Australian house prices are too high and global investors believe that it only a matter of time before they collapse…
- More Arrium-style collapses will emerge as industrial companies…
- Negative interest rates cover about a quarter of the world’s output and are affecting bank profits…
- Australian super funds encourage shorting of Australian shares by lending out members’ stock…
Gotti focuses more on symptom that cause but its a decent list, except the last point, there are many ways to short a stock. I would add the drivers in China’s rebalancing and trilemma, broken EM business models, European disintegration risk, as well as regulatory tightening and negative gearing reform locally.
The Mining GFC meets Quantitative Failure…
Advertisement
