- Your history
Heat maps, Ro-Ro transformation or the great disconnect ?
Heat maps and correlation trades, that was the main theme over the past 6 to 7 years. In the charts above, it marks the dominant presence of red and dark blue spots, indicating various pairs of assets are either heavily negative or positive correlated to each other when it comes to price movements. It became known as Ro-Ro or Risk-on-Risk-off mode of financial ...
Christof Govaerts
FX space billiards
"When you put all the pieces together, my guess is that the next in line will be Australia", Econoshock 16/04/13 Beggar thy neighbor in full swing. Well, it took about a ... Christof Govaerts
-
Death by Excel and the power of Mach 10 media
How sad, how sad to celebrate the liberty of media globalization in such a way. I am referring to the recent Rogoff-Reinhart incident or already better known as the R-R-gate. Some people discovered a mistake - an excel programmed calculation error - which puts the R-R thesis of "post crisis slow growth in a debt > 90% of GDP ...
Christof Govaerts
-
Beggar thy neighbour in full swing...
...and we have our first victim under the category "to export your problems or not, that's the question" : South Korea. When "Abenomics" was announced for the first time late November, markets already anticipated on a huge Japanese support program in budgetary terms and in monetary terms to create inflation and weaken the currency. ...
Christof Govaerts
-
Housing, a new business cycle shelter ?
A couple of months ago, we already discovered some green shoots in the US economy with some cautious revival signs in the housing sector after 5 years of blood, sweat and tears. Today we see that more and more optimistic surveys point to hope on the good old brick coming to the rescue once again. What's the state of play as far as ...
Christof Govaerts
-
Liquidity carpet bombing
“The risk is we stay in this climate too long and that the carpet bombing of liquidity spurs inflation. Though there are no current signs of consumer price inflation, there is inflation, perhaps a bubble, in some asset classes. Segments of property markets across the globe, for example London, also display symptoms of this. ...
Christof Govaerts
-
Henry Fonda
Friday and we like to take a detour to a classic movie, a Sidney Lumet 1-acter dating from 1957 starring a host of star actors, not in the least Henry Fonda. At stake is the life of a young Latino and what seems apparently to be a clear cut case for the jury, is not so straightforward for Henry Fonda. He doubts the evidence of the ...
Christof Govaerts
-
Update BRICS and Global Finance
We shouldn't be surprised after all but today came the news that BRICS - Brazil, India, China, Russia and S-Africa - are a bit fed up with the international world of finance. Last year we already commented on the fact that they were willing to come to the rescue wrt the sovereign debt crisis in the developed world, provided their ...
Christof Govaerts
-
Friday's "light" take on Silver
Since QE went into 2.0, 3.0, 4.0 and now global with Japan trying to break world records, gold has received quite some attention. But next to gold, we have a commodity named silver and this commodity has recently returned into the spotlight. Silver is an industrial commodity but most of all it has been subject of attention ...
Christof Govaerts
-
Russia cornered in the Mediterranean ?
Cyprus and the bail-out. Excuse me, depositors' "bail-in" deal and the visit to the hairdresser. About the rescue package and the fact that private savings' accounts are partially confiscated, already a lot of criticism has arisen. Economic sense or nonsense ? Or are other major forces at work here ? On the deal itself, it's a ...
Christof Govaerts