01-06-2016, 11:35 PM
Looks like a very ugly day ahead, luckily we have plenty of cash in the virtual portfolio, we've hardly started buying. And there are still optimists:
The eurozone is nearing the sweet spot, a fleeting nirvana of 2pc growth, conjured by the trifecta of a cheap euro, budgetary break-out, and the end of bank deleveraging. Mario Draghi’s printing presses are firing on all cylinders. The 'broad' M3 money supply is growing at turbo-charged rates of 5pc in real terms. This is a 12-month leading indicator for the economy, so enjoy the ride, at least until the demonic Fiscal Compact returns at the dead of night to smother Europe once again.
Economic sweet spot of 2016 before the reflation storm - Telegraph
China's money supply is also catching fire. Growth of 'real true M1' has spiked to 10pc, a giddy shot of caffeine not seen since the post-Lehman spree. Combined credit and local government bond issuance is surging at a rate of 14pc. The Communist Party cranked up fiscal spending by 18.9pc in November.
Economic sweet spot of 2016 before the reflation storm - Telegraph
The epic dollar rally has come and gone. The world's currency will drift down over coming months, and that will be a reprieve for the likes of Brazil, Turkey, South Africa, Indonesia, and Colombia. Those at the wrong end of $9 trillion of off-shore debt in US dollars may breath easier: they will not escape. The MSCI index of emerging market stocks will return from the dead, clawing back most of the 28pc in losses since last April, but only to lurch into a greater storm
Economic sweet spot of 2016 before the reflation storm - Telegraph