Archive | May, 2016

China is Doubling Down on State Directed Growth

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Over the weekend we got the monthly slue of Chinese data around fixed asset investment, credit creation, retail sales, and industrial production. Generally speaking, the data was soft, with misses in all categories. But one data point continues to stand out to us as evidence of the not-so-subtle involvement of government sponsored entities in the […]

Valuations are a Reason to Favor Active Management at this Stage

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It would be tough to make the case that aggregate valuations are low at this stage in the bull market, and that valuation expansion is a likely tailwind to further equity gains. Alas, aggregate valuations are only one measure, and while aggregate measures do indeed point to heightened “valuation risk”, individual company valuations remain highly […]

Has the Long Yen Trade Run its Course?

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Despite an unprecedented amount of monetary easing taking place at the Bank of Japan, the yen has since the middle of 2015 been on a consistently strengthening trend versus the USD. As paradoxical as it may seem in a period when the Fed talked about, and then did raise interest rates coincident to the BOJ firing […]