Earlier in the week we shared Pierre Andurand's hedge fund note blame-casting his fund's dismal drawdowns on "CTA flows eclipsing the gradual improvement in fundamentals."
The market sell-off is missing the larger picture, he proclaims.
A year ago, we noted that The Bank of Japan (BoJ) was a Top 10 holder in 90% of Japanese stocks. In December, we showed that BoJ was the biggest buyer of Japanese stocks in 2016. And now, as The FT reports, the real "whale" of the Japanese markets is stepping up its buying (up over 70% YoY) entering the market on down days more than half the time in the last four years.
Authored by Axel Merk via MerkInvestments.com,
How does one construct a portfolio in an era of seemingly ever rising and highly correlated asset prices? Years of asset prices moving higher has changed both retail and institutional investors; it has changed the industry; and, in my humble opinion, those changes spell trouble. The prudent investor might want to take note to be prepared.
By Chris at www.CapitalistExploits.at
Earlier this week, Kyle Bass spoke on Bloomberg about the reckless expansion of the credit system in the Middle Kingdom.
He warned about the ballooning asset-liability mismatch in the shady $4-trillion wealth management products (WMPs) market.
And went on to say "this is the beginning of the Chinese credit crisis" while admitting it could take some time for things to really start unraveling.
Authored by MN Gordon via EconomicPrism.com,
American workers, as a whole, are facing a disagreeable disorder. Their debt burdens are increasing. Their incomes are stagnating.
There are many reasons why. In truth, it would take several large volumes to chronicle all of them. But when you get down to the ‘lick log’ of it all, the disorder stems from decades of technocratic intervention that have stripped away any semblance of a free functioning, self-correcting economy.