Tag Archives: China

QOTD: AI And China

China recognizes that AI will be critical to its future “comprehensive national power” – The Diplomat

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COTD: Guess Who Is Growing And Who Is Not?

We will give you a hint: …credit is the mother’s milk of growth; without credit the economy cannot flourish. And credit cannot flow freely without a well-functioning financial system. – Mark Zandi But as Japan and the others illustrate, there’s … Continue reading

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COTD: China’s Financial System

. China’s financial system consists of six major entities: The People’s Bank of China, governments, commercial banks, financial institutions, enterprises, and individuals. The People’s Bank of China is a national bank, invested by the government. Though the People’s Bank of … Continue reading

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Emerging Market Dollar Bonds: An Option Based Analysis

In my prior life I used to trade emerging market (EM) bonds and came up with the following analytical framework using options analysis to understand and teach the basic fundamental principles of how to value EM hard currency bonds.   The … Continue reading

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QOTD: Ambiguous China Policy

It used to be said that Ronald Reagan’s “Red China” policy was driven by Nancy:  “don’t serve it on a green table cloth.”    President Trump’s policy?  Yet to be determined. …U.S.-China relations remain in the Schrodinger’s cat-like state they … Continue reading

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Is This Why Gold and Bonds Sold Off?

Truly a mug’s game to try and retrofit fundamentals to short-term market moves, but ain’t gonna stop us! We’ve noted the comovement of the U.S. 10-year T-Note with gold over the past few months, driven, we believe, mainly by geopolitical … Continue reading

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What Really Keeps Us Up At Night – Do The Math

Lots of these being drawn up by the new U.S. administration. The one that scares us most is this: Mattis: US will defend Japanese islands claimed by China – CNN And today we hear this: China sails warships near islands … Continue reading

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Almost All World’s Currencies Undervalued

We’ve put together a couple of tables showing the undervaluation of the world’s currencies based on their 2016 purchasing power parity against the U.S. dollar. The Purchasing-power-parity (PPP) between two countries is the rate at which the currency of one … Continue reading

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Who Could Lose the Most in a U.S.-China Trade War?

Jan.22 — Now that Donald Trump is in the White House, the world’s biggest companies are trying to gauge the likelihood of a U.S. trade war with China. If the tension escalates, there could be losers on both sides. Bloomberg’s … Continue reading

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“Good Trump” Catapults Dow To 20K As “Bad Trump” Lurks

Party on, Garth! The Dow crossed 20k as the market perceives accelerated future profit growth from the “Good Trump” policies – deregulation, etc. – and traders surf the Keystone pipeline to higher prices.   The momentum will continue until it … Continue reading

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