HEDGED.BIZ

A look at economics, markets, finance and the irrational human being

Macro: Equity Markets and Policy

  In economic policy there is a difference of view between the US and the rest of the world. As Japan’s largest trading partner the US is especially empathic to the deflation scenario that has plagued Japan since 1990. Therefore, US monetary policy is likely to err on the side of being too loose rather
Read more
No Comments

China Signals Flexibility in the CNY exchange rate

On Saturday, 19 June, China signalled the end of its currency peg which fixed the CNY at 6.83 to the USD and said it would gradually make the its currency more flexible. The CNY appreciated to 6.80 on Monday. A stronger CNY it was hoped would: Address the trade imbalances between the US and China.
Read more
No Comments

Hedged.biz Downgrades Credit Ratings Agencies

Hedged.biz has downgraded Fitch, Moody’s and Standard and Poors from AAA directly to junk. For downgrading (upgrading)  issuers only after price discovery has occurred and being reactive rather than proactive. For downgrading (upgrading) issuers only after bad (good) stuff has happened and been priced in. Downgrading BP over a month after their rig in the
Read more
No Comments

The State of The Craft

We are not rewarded to bolster the base of the pyramid but to reach for the stars. Too often intermediate levels are built upon a deck of cards. Where the potential to build highest lies, most effort is directed there, often in disregard of the frailty of the supporting levels below. The engineer knows that
Read more
No Comments

Country versus Sector Effects: A Trading Strategy

With the acceleration of globalization in the last 20 years up until 2008 sector risk has risen relative to country risk. The classic example is in Europe where a stock like RWE starts trading less like a German stock and more like a European utility stock. With the credit crisis of 2008 came a number
Read more
No Comments
TOP

DISCLAIMER / DISCLOSURE

The information, articles and content on www.hedged.biz are written by an industry professional who is currently in the investment industry working for a professional institution. By viewing or participating in discussion on this site, you understand that the opinions expressed here do not reflect the opinions or recommendations of such professional institution but is the author’s personal opinion.

 

The information in this site is believed to be reliable, however, no representation is made that it is complete or reliable. No reliance may be placed for any purpose on the information and opinions contained in this site and no representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions contained here.

 

Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security or other instrument. Before investing, consider your investment objectives, risks, fees and expenses. Any purchase or sale activity in any securities instrument should be based upon your own analysis and conclusions. Past performance is not indicative of future results