Chris Whalen, Chairman of Whalen Global Advisers and a very well-known financial analyst (he was one of the original forecasters of Lehman's inevitable demise) appeared on MacroVoices podcast this week to discuss the equity valuations, the path of the US dollar and DoubleLine Capital founder Jeff Gundlach’s declaration that the 35-year bull market in bonds is dead. Some of the key highlights:
When Russia warned on Friday that it would retaliate proportionately after it announced it would seize two diplomatic compounds used by the US in Russia and added that it would reduce the number of US diplomatic service staff in the country to equal the number of Russian diplomats in the US by September 1, calculated by the local press at 455, it wasn't joking.
Less than a month after the US flew two B-1B bombers over the Korean Peninsula to show off "US attack capabilities", the US Air Force did it again on Sunday, when it the flew two supersonic B-1B bombers over the Korean peninsula in "a show of force" on Sunday after Pyongyang's Friday test of an ICBM that can reach the continental US.
North Korea’s latest ICBM test demonstrated once again that all of Japan is within striking range of the Kim Jong Un’s missiles, as it has been for a long time.
But it appears the North’s intensifying campaign of missile tests, which have increased dramatically in frequency since the beginning of the year, has convinced many wealthy Japanese that a nuclear confrontation could be imminent.
Below are some key highlights from Third Point's latest Q2 letter, in which we find that Dan Loeb, despite some early market turbulence and thesis drift, has again managed to do what 95% of his peers have been unable to do, outperforming the S&P YTD and returning 10.7% through June 30, up 4.6% in the second quarter.
From the Second Quarter 2017 Investor Letter:
Review and Outlook