Turning Points: Buffett’s Derivative Bets, China Mixed, Japan Changing, and the Euro Muddling Through
A wrap-up of the key issues affecting global markets for fundamental investors:
Currencies
- Japan to join in the currency wars as strong Yen stifles exports. (Telegraph)
- From the Czech crown to the Brazilian real, QE3 triggers new fear of currency wars. (CNN)
China’s Slowdown
- Debating China’s economic future: Nick Lardy vs. Michael Pettis. (Wall Street Journal)
- Will China open its economy? Moving forward means slowing down. (People’s Daily Online)
- China’s non-manufacturing industries signal a rebound. (Bloomberg)
Commodities
- Commodity demand from China is mixed. (Forbes)
- Dr. Copper trading at about $3.54 per pound (see this historical chart). (InfoMine)
- Oil declines on demand doubts. (Wall Street Journal)
Derivatives
- Buffett’s equity index derivatives bets beginning to turn positive. (Washington Post)
- Dodd-Frank roils Asia energy derivatives. (Financial Times)
Euro Crisis
- Germany’s Merkel says an exit from the eurozone Crisis will take at least five years. (Business Inquirer)
- Unemployment in Europe: figures for every country. (The Guardian)
Hedge Fund Money
- David Einhorn shorts iron-ore. (Business Insider)
- Ray Dalio lays out his manifesto on principles. (Bridgewater, PDF)
Interest Rates and Central Banks
- The dark side of QE3 for investors. (Wall Street Journal)
Japanese Debt and Inflation
- BOJ announces fresh economic stimulus. (Reuters)
- BOJ needs a bolder approach. (Japan Times)
- Japan’s trade deficit is pushing change. (Bloomberg)
US Stocks
- Boomerang buyers unlikely to return to the housing market quickly. (Wall Street Journal)
- Ken Fisher lays out his top five picks for late stage bull market. (Bloomberg)
Real Estate
- Bubble in US real estate market has virtually disappeared. (DB Research)
- Canada’s price-to-income ratios approach US peak. (AdvisorAnalyst)
Time Capsule
- Young Ben Bernanke publishes: “The Macroeconomics of the Great Depression: A Comparative Approach.” (National Bureau of Economic Research, PDF)
For more news and trends, visit the Economics Community of Practice.
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