Trump’s trade adviser Peter Navarro complains about an unfair competitive advantage for Germany. He has a point, and this has much to do with the internal workings of the eurozone. There are signs some of it might be unwinding, and the ECB might be forced to remove stimulus, which will boost the euro. We think […]
Entries from February 2017
February 25th, 2017 · Comments Off on Germany Is The New China
February 25th, 2017 · Comments Off on How To Profit From The Low VIX
The VIX is very close to an all-time low. This is somewhat odd, as we have what can only be described as a high-volatility new President. As the VIX is a mean-returning variable, we think the VIX will cave in first and we show you some ways to position for that. How To Profit From […]
February 18th, 2017 · Comments Off on Growth At All Cost?
The new government has announced a wave of deregulation. There is a simple reason for the increase in regulation, which is the increase in complexity of modern economies. Markets are rejoicing at the prospect of deregulation, which can indeed increase growth. But we should not lose sight of the fact that it can also entail […]
Tags: Public Policy
February 18th, 2017 · Comments Off on Intel: Ready For The VR/AR Revolution?
Many foresee a (near) future where VR/AR solutions will emerge as the next computing platform. Intel has a three pronged strategy to have a meaningful presence. We look how that is developing and are especially impressed with Intel’s original Project Alloy. Intel: Ready For The VR/AR Revolution?
February 18th, 2017 · Comments Off on Trump Versus The Dollar, Round 2
President Trump has argued that the dollar is too strong, and he does have a point. A strong dollar is bad for US exports and corporate earnings, but there are also other ramifications. The problem is, there doesn’t seem to be much he can do about it. Trump Versus The Dollar, Round 2
February 8th, 2017 · Comments Off on Addressing The Right Problem, Blaming The Wrong Elite
Some, like Ray Dalio, argue that the rise of populism has become the biggest threat to the markets. Many agree, populists very much included, that a rise in inequality and stagnating wages have been the main impetus for that rise. Where views differ is what has caused that and who have been the main beneficiaries. […]
February 8th, 2017 · Comments Off on Is Shareholder Capitalism Actually Good For Shareholders?
Since the late 1970s, the concept that firms exist exclusively for creating shareholder value has gained track and it is now firmly anchored by a host of institutions. While it helped boost company profits, it hasn’t led to shared prosperity as there are some negative economic side effects. Most notably though is that the biggest […]
Tags: Corporate governance
February 6th, 2017 · Comments Off on Could Investors Face A Death Spiral In Oil?
The oil industry is rejoicing the OPEC agreement and the upcoming Trump liberation of US fossil fuels. However, there are strong undercurrents which are not particularly favorable for the industry. Not everybody in the oil world seems to be prepared for some of these changes. Could Investors Face A Death Spiral In Oil?
February 6th, 2017 · Comments Off on The Reflation Trade Is Coming To An End
Reflation efforts in the wake of the 2008 financial crisis have been successful in keeping economies from slumping into depression, apart from some eurozone countries. But these reflation efforts have been running into diminishing returns almost everywhere, and are now running on their last legs. The question is, can we make an orderly transition, or […]
Tags: The Markets
February 4th, 2017 · Comments Off on Trump’s Energy Blitz
The incoming Trump government looks set on making considerable changes in US energy policy. The main planks look to be substantial deregulation and a shift in emphasis towards fossil fuels. We look at the likely effects of these policy changes on energy markets. We’ll also highlight some little reported downsides. Trump’s Energy Blitz