Links 18 July 2019

Global Macro / Markets / Investing:





Leith van Onselen


    • Nah, they just changed the bulbs on the warning panel, and did a test they’re working. They’ll be back to ‘EVERYTHING IS FINE’ alert next quarter.

  1. The Traveling Wilbur

    From Damien Boey via an earlier MB post:

    Over a 10-year horizon (a very long period of time allowing us to abstract from cyclical factors like demand and pricing power), economists forecast US CPI inflation of 2.25%. They have pretty much stuck to a 2-2.5% forecasting range since the beginning of interest rate and inflation targeting by the Fed in the early 1990s. But the bond market is only discounting less than 2% inflation over the same horizon. In other words, unless we expect economists to revise down their numbers to meet the market (which they have never done since 1990), the inflation risk premium in bonds is negative.

    Someone really needs to send the charts of RBA inflation expectations year on year (vs actuals) that MB enjoys publishing and are so fun to read.

    • Pension funds agree with this………..for the last couple of months Indexed AGS have been getting minus 0,2% at the auctions

    • I’m not surprised as they likely have higher costs than Taiwan, Korea did during their rise as corruption worse (though may seem to show positive economic signals to begin with), have a huge security apparatus, less efficient SEO’s in many cases, more misdirected investment ie real estate etc. Australia would do well to take note given the huge sums of money now flowing into the wrong pools eg gas/energy, real estate, toll roads, water management, NBN, etc all these things reduce our competitiveness in the end & reduce our long term prospects.

      Here is how China’s tech sector is going,

  2. Edit: Damn! JohnR beat me to it!

    I got another one, guy I worked with bought another memory chip to solder ontop of the one installed, thought he’d get double the storage space! LOLz