With 2016 still fresh in most investors' minds, and questions about 2017 pressing, here is a summary, courtesy of Goldman's Allison Nathan, of where Goldman believes we closed out 2016, what is in store in the coming year, and ultimately, "what keeps Goldman up at night" about 2017.
2016, and a peek at 2017
As Axiom Capital's Gordon Johnson points out, Iron Ore stocks at Chinese ports just hit a new record high in the last week of 2016, even as the spot price of iron ore staged a dramatic comeback over 2016, closing near the highs of the year. However, as Johnson notes, if history is any precedent, such record stocks "carry an ominous sign for iron ore prices." Here's why.
After jumping by the biggest 1-wk increase since Oct. ’15, +2.7% w/w, iron ore inventories at Chinese ports reached a new record high of 114.0Mmt on 12/30.
As noted yesterday, for the first time in three years, and only the second time in history, bitcoin rose above $1,000 in Yuan-denominated Chinese trading, however it was limited to the lower side of this "round number" psychological barrier in US trading, as BTC flirted with $999.99 for most of the day on the popular Coinbase exchange, without crossing it.
Submitted by Federico Pieraccini via Strategic-Culture.org,
Last weekend, when commenting on China's public demonstration of its one and only aircraft carrier, which China then proceeded to sail in close proximity to Taiwan to make a clear diplomatic "statement", we noted something tangentially troubling: " a quick look at the latest positioning of US aircraft carriers, amphibious ready groups, and other navies around the globe shows a gaping hole in the region of the East or South China Sea, and even in proximity to Japan, a place where the US navy traditionally has maintained at least one carrier group. In fact, according to Stratfor, the only ac