Forget the creepy predictions about Tokyo-style deflation. The predicted inflation in the Euro zone in five years has been rising to the highest level this year. Not predicted by some Brussels government agency, but based on the difference between the yields on inflation protected bonds and conventional bonds. In five years the predicted inflation forRead more
Editors in the financial press need a lot of imagination to describe the distressed world around us. Cutting jobs, slashing dividends and reducing estimates are the most common lines on the front page and hardly leave any room for poetic creativity. Enter the zombie banks. The term financial “Zombies” has been coined by economist EdwardRead more
After reading Paul Kedrosky’s post about Harvard’s portfolio changes I decided to walk through its holdings in the latest SEC 13F report. Top investments where clearly some Emerging Markets ETF’s, but assumed this was because of the concentration of Emerging Market investments in a few lines, while regular stock holdings were scattered in a lotRead more
“There are three types of lies – lies, damn lies, and statistics”, a famous quote attributed to the British politician Benjamin Disraeli. As of today we can add the bubble charts. Researchers from JP Morgan messed up their data on the capitalization of banking stocks terribly. The lay offs apparently have reached the researchers inRead more
A wave of bankruptcies will hit the US stock market according to Gunnar Stangl, strategist at Dresdner Bank in Frankfurt. The crest of the wave is still going to hit us. Bankruptcies are really just like a slow avalanche Impressing chart. Busy with option expiration today. (click for larger picture)
