Turning Points: Japan’s Lonely Road, the China Slowdown, Currencies, and the Eurozone Crisis

Thursday morning reads on the key issues affecting fundamental investors.

Currencies

• Avinash Persaud, currency expert, creates simple rules to distinguish pertinent central bank statements from the (mostly) meaningless drivel. (Enterprising Investor, video)
• Persaud also references his seven rules of foreign exchange that govern currency trading. (Gresham College, video)
• The yen strengthens on reports of weakening global growth and mild surplus in Japan in February. (World Bank)

China’s Slowdown

• Dan Kurz, CFA, says the unwinding of China’s unholy alliance with the United States is inevitable and has already begun. (Enterprising Investor)
• Macau is beginning to feel the pinch from China’s slowdown. (Businessweek)

Commodities

• Copper turns to backwardation. (Seeking Alpha)
• More upside for gold or gold miners? (Seeking Alpha)

Derivatives

• Was it inevitable? Options traders shift to bearish Facebook bets. (Barron’s)

Euro Crisis

• How to save Spain. (Economist)
• The World Bank blasts the EU’s crisis management. (Der Spiegel)

Hedge Fund Money

• How Bill Ackman of Pershing Square won the fight over Canadian Pacific. (New York Times)
• Paulson, Dalio, and Ackman: Hedge fund legends tell all in new book. (Forbes)

Interest Rates and Central Banks

• Swiss government bond yields are signaling a de-pegging of Swiss franc against the euro. (Seeking Alpha)
• Proof positive that forecasts tell you nothing about the future but reveal much about the forecaster. (Zero Hedge)

Japanese Debt and Inflation

• Kyle Bass’s short on Japan shows why investing can be a lonely road. (Zero Hedge)

U.S. Stocks

• Not advocating P&G, just pointing out that its dividend yield now exceeds the bond yield on 10-yr Treasuries for the first time in 35 years. Wow. (Seeking Alpha)

Real Estate

• Hotel values continue to climb (about $13,000 per room on average). (National Real Estate Investor)

Time Capsule!

• Jim Grant reviewed Florida real estate for Forbes in 2005 at the peak of the crisis. Bravo, Mr. Grant. Bravo! (Forbes)

Macau cityscape image from Shutterstock.