liquidity

In his latest presentation, Francesco Filia of Fasanara Capital discusses how years of monumental liquidity injections by major Central Banks ($15 trillion since 2009) successfully avoided a circuit break after the Global Financial Crisis, but failed to deliver on the core promise of economic growth through the 'wealth effect', which instead became an 'inequality effect', exacerbating populism and representing a constant threat to the status quo.

Last Friday, when looking at the historic, record lows in September volatility and the daily highs in US and global equity markets, BofA's chief investment strategist Michael Hartnett said that the "best reason to be bearish in Q4 is there is no reason to be bearish."

Authored by Kevin Muir via The Macro Tourist blog,

This morning’s big news is the Chinese announcement they would they would buy more US Treasuries as the Yuan stabilizes. From Bloomberg:

China is prepared to increase its holdings of U.S. Treasuries under the right circumstances, as officials judge the assets are becoming more attractive than other sovereign debt and as the yuan stabilizes, according to people familiar with the matter. Treasuries rose, driving yields to the lowest since November.

 

Authored by Kevin Muir via The Macro Tourist blog,

We all get it wrong, including Bass, Yusko, Icahn, Dalio, and [insert whatever guru you want in here].

So when you take solace in the fact the stock market is running higher without you, I would be weary of consoling yourself that you are in smart company.

We first brought the world's attention to Noble Group in 2015, as commodity markets crashed and what was Asia's largest commodity trader faced near-bankrutpcy as trading partners lost faith, bonds were dumped, and CDS protection was bid. In the months since, panic subsided and everything  - as it always seems to have been - was fine... until last week!!

Which brings us to the recent price action in Silver (as well as various other commodities). As The Macro Tourist's Kevin Muir asks (and answers) -

Was Noble The Big Silver Seller?