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Positioning stronger than Fundamental? Flows are Stronger, for now… Improving Entry Points in Risky Assets?

Sep 27, 2023 | China, Geopolitics, Global Macro, Inflation, Real Estate, USA

Some extract :

  • Yesterday was symptomatic of our markets: neither fundamentals nor positioning were the cause of asset movements (except for rates), ….
  • According to reports, after the US banking sector experienced a period of turbulence earlier this year, total deposits recently fell year-on-year, which was the first time since data became available in 1994… The banking sector’s problem is not an explosion in ….
  • To demonstrate that the flows are only technical, your scribe will ask a few questions:
    • Why is the DXY at a 10-month high when the shutdown and a downgrade of the US is on the horizon?
    • If it’s because of the “Higher for Longer” and the rate differential, why can’t the 2YUS beat last week’s 5.14%?
    • …..
  • Your scribe found it interesting that over the past ten years, some of the world’s richest people have more than doubled their investments in apartments …
  • Confirming the importance of China in the semiconductor supply chain, the USA indefinitely extends China waiver for South Korean chipmakers. That’s authorized our stance regarding ….

 

 

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Geopolitical Collateral Damages vs. Financial Collateral Advantages!

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US to indefinitely extend China waiver for South Korean chipmakers

The U.S. is expected to indefinitely extend a waiver granted to South Korean chipmakers Samsung Electronics and SK Hynix on needing licenses to bring U.S. chip equipment into China, Yonhap news agency reported on Wednesday. The U.S. Commerce Department has discussed...

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Over the past 10 years, some of the world's richest have more than doubled their investments in apartments globally, with a particularly heavy emphasis on the U.S, Bloomberg reported, citing research from Knight Frank. With oversupply being an issue in the multifamily...

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Some extracts: To be clear, your scribe believes that we are almost at the dawn of the October rally and that, given the extreme positioning of shorts, fundamentals will not carry much weight. For the record, our Global Macro's two best performances in yesterday's...

Decision Time Coming Soon! China Bounce, Reallocation in Equities, and Zurich as example of the Supply Choc!

Some extracts : The three most important facts for China, which the Western media and analyses do not relay, are : The relaxation, or even disappearance, of the hukou. The institutionalization of financial flows following the launch of private pension funds in...

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