Look East On The 4th, That’s Where The Real Fireworks Are
As we head into the holiday weekend, why not think about China? Actually, wait. Don’t answer that. It’s the 4th of July. Independence Day. So for US traders, that’s probably one reason not think too hard about China. Let’s try that again: as we head into the holiday weekend, it’s important to remember that as…
A Look At Active Manager Positioning And A Chinese Intervention
On Tuesday, we took a look at what works as a hedge during equity drawdowns. Last week, we took stock (no pun intended) of which companies and sectors were most exposed to Brexit and also to a rising dollar. No sooner had we finished analyzing where to turn in turbulent times than risk went crazy.…
Here’s The Most Important Question For Risk: Whither The Yuan, My Friends?
Sometimes it seems like no one gets it when it comes to the Chinese yuan, which is really too bad because in many ways, what happens to the renminbi determines the direction for risk assets. Last August, the market was abuzz with news that Beijing had decided to let the market play a more active…
Here’s What To Watch Ahead Of The All Important June Fed Decision
Well, here we go again. Both crude and stocks got off to a rocky start on Thursday as the Dow plunged triple digits and oil fell more than 2.5%. The culprit: why, the Fed of course. This week has reinforced the market themes that have played out for most of this year. On Monday we…
Which Came First, The Fed, China, Or Oil?
Last September, Janet Yellen adopted the now famous “dovish relent.” A little over three weeks earlier, China “shocked” the market with a “surprise” devaluation of the yuan. To be sure, no one should have been taken off guard. China is an export driven economy with a currency tethered to the dollar. As the dollar moved…