Global Macro


More record highs for global stocks as ASX black hole expands

DXY roared Friday night and the future is up: AUD crashed but rebounded on news that Jerome Powell is now Fed favourite. EUR is weak as Catalonia disintegrates: Against EMs, AUD was mixed: AUD speculative longs eased 5k last week but remain hilariously, wonderfully long at 57k: Gold held on: Brent broke out. WTI is


All the way with the USA, Australian dollar smashed

DXY has delivered on the promise of its bullish inverse head and shoulders chart. We’re off and running now: AUD was pounded power against USD but rose against an even more weak EUR: EMs were even weaker than AUD: Gold is verging on break down: Brent is powering on: Base metals still smokin’ the crack:


Ray Dalio on the global class war and what it means for investors

Via Ray Dalio of Bridegwater today: Our Biggest Economic, Social, and Political Issue The Two Economies: The Top 40% and the Bottom 60% To understand what’s going on in “the economy,” it is a serious mistake to look at average statistics. This is because the wealth and income skews are so great that average statistics no


New record highs for stocks

DXY launched last night then lost the lot. The chart remains bullish: AUD was weak against DM: But strong against EM: Gold was soft: Brent was firm on US hurricane outages and OPEC output cut extension talk (a certainty): Base metals were mixed: Big miners were crushed by Xi Jinping: EM stocks rebounded: High yield


Is King Dollar back?

DXY was strong last night and it’s head and shoulders bottom is near perfect if it breaks out: AUD was weak against USD, firm against EUR: It was strong against EMs: Gold was pummeled: Brent is still strong: The base metals lunacy flamed out: As did big miners: And EM stocks: High yield is stable:


It’s the everything (except ASX) boom!

DXY rebounded a little Friday night: But that couldn’t stop the runaway train that is AUD: Though it was mixed against EMs: AUD trader longs pulled back last week to 69k: Gold was on fire: Brent strong: Base metals partied: Big miners too: EM stocks moonshot: High yield yawned: US yields fell and the curve


Downtrodden youth must mobilise against intergenerational unfairness

By Leith van Onselen Earlier this month, The Grattan Institute published a report outlining in all its hideous glory how older Australians have gotten wealthy while the young have been left behind: Data from the Australian Bureau of Statistics (ABS) shows that older Australians are capturing an increasing share of the nation’s wealth, and the


Why is Macquarie long the “perpetual leveraging doomsday machine”

Great stuff today from the always entertaining and cross-disciplinary Viktor Shvets at Macquarie: Investors seem to be residing in a world without any notable perceived risks. It is an extraordinary and unprecedented situation, particularly given unresolved issues of over leveraging and associated over capacity as well as profound disruption of business and economic models, which


More record highs for stocks

DXY held up overnight: AUD did too as 78 cents holds for now: It was mixed against EMs: Gold tried and failed to rally: Brent bottomed: Base metals are still levitating: Big miners love China on holiday: EM stocks too: High yield yawn: US yields edged higher: European spreads widened again on Catalonia but it’s


Does finance benefit society?

Cross-posted from LF Economics: The title of the article comes from a very interesting and hard-hitting paper authored by a leading mainstream economist, Luigi Zingales. He is a professor of entrepreneurship and finance at Chicago University’s School of Business, with impeccable mainstream credentials. The paper in question appeared in The Journal of Finance and can


Would you like a car with those fries?

Bloomberg ran a report last week on electric cars that turned into a longer read than I expected as I chased through some of their numbers that seemed wrong: It’s been 10 years since Apple Inc. unleashed a surge of innovation that upended the mobile phone industry. Electric cars, with a little help from ride-hailing and self-driving technology,


Global stocks race ahead as Straya eats dirt

DXY was stable Friday night: AUD slipped against USD and fell against EUR: It was weak against EMs: AUD longs hit a new high last week, music to a bear’s ears: Gold was weak: Brent too: Base metals mixed: Big miners enjoyed the dead cat: EM stocks rebounded: High yield is still stuck: US yields