Rewardless Risk
Submitted by Ben Hunt via Salient Partners' Epsilon Theory blog,
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Bank of Japan
"The February Air Pocket": Buybacks Are Back But No Central Banks To Hold Traders' Hands
There will be two key themes for investors seeking to shake off the abysmal "as goes January" blues:
Rally Hobbled As Ugly China Reality Replaces Japan NIRP Euphoria; Oil Rebound Fizzles
It didn't take much to fizzle Friday's Japan NIRP-driven euphoria, when first ugly Chinese manufacturing (and service) PMI data reminded the world just what the bull in the, well, China shop is...
... leading to a 1.8% drop on the first day of February after Chinese stocks slid 23% in January with the nation’s manufacturing sector faces strong galewind challenges as the government plans to reduce excess industrial capacity and unleash troubling mass unemployment, while a weakening currency is spurring capital outflows.
This Question Should Not Be A Difficult One To Answer
Submitted by Jeffrey Snider via Alhambra Investment Partners,
Did A Central Banker Just Margin Call All Other Central Banks' Credibility?
Authored by Mark St.Cyr,
In a stunning policy move Bank of Japan Governor Haruhiko Kuroda introduced and adopted negative interest rates. The word “stunning” is fitting, for just weeks prior he stated there was no need to adopt such measures. It seems by all accounts his mind changed (or was made right?) after returning from Davos.