A Double Edged Sword of the US Economy

Introduction As we noted in our final publication of 2017, the year 2017 was characterized by very low volatility and stable positive returns on the majority of stock markets. This took place even despite the start of stimulus withdrawal by major central banks which was seen in the gradual increase in the target policy rates […]

Special Report: How did Turkey get out of the Financial Crisis?

Since 2001, Turkey has been subject to profound and remarkable economic and financial transformations that have led this emerging market to become the 17th largest economy in the world, with a nominal GDP of $800 billion. After the banking crisis that hit the country at the beginning of 2001, Turkey underwent a period of incredible […]

Follow-up on last week Japan trade idea

Last week we suggested shorting three Japanese financials in light of the 10-years JGB price fall, going at the same time long Olympus Corp. and the Nikkei index, in case no more easing was announced on Tuesday night. Kuroda kept monetary policy on hold and so we entered the trade on Wednesday Tokyo early trading. […]

Conditioned order in Japan: short financials if no more stimulus is added by BOJ on Tuesday night

INTRODUCTION During last months in Japan, extreme monetary policies – also known as Abenomics – implemented by the duo Abe-Kuroda to fight deflation and give a kick to the stagnant economy, have caused a huge reaction all over the markets: the Yen has been slashed, Nikkei index has been skyrocketing in an impressive rally and […]

Trade idea: Spread Long S&P 500 short Nikkei

We believe that in case of a strong distress the Nikkei index can suffer the most. Why not European equities? We believe that European equities have already suffered from the recent turmoil while the Japanese index has been heavily unaffected and has recently rallied dramatically, completely diverging from fundamentals whose forecasts have continuously declined recently. […]

The EU financial transaction tax (EU FTT, aka the “Tobin Tax”)

The EU financial transaction tax (EU FTT, aka the “Tobin Tax”)   The tax that divides Europe. “Any US or Asian institutions trading securities issued in France, Germany, Italy or Spain would also be taxed”.   Aims: Raise new revenues for the EU, thus plugging gaps in national budget deficitsand hit speculative trading.   Which […]