Economic arbitrage drives the trades, headlines drive the wins Every week, the global orchestration of central banks media releases give every performer a...

Economic arbitrage drives the trades, headlines drive the wins Every week, the global orchestration of central banks media releases give every performer a chance to play their tune. Last night we had Japan chirping their currency up for a change, with the finance minister saying it has dropped too fast - which was a less than academic comment and got as much respect as a three day old takeaway sushi box. Then cue to a surprise act in the form of a Chinese Interest Rate cut - exposing China's growth concerns we suspect are getting worse. Then finally the ever repetitive rhyme from Mr Draghi saying ECB must boost inflation as fast as possible. My reasoning for the portfolio's positions are fairly boring - ie. arbitraging the differences in our economic forecast analysis - but the market reaction leading to our profits have been these headlines mentioned above. They turn markets on a dime and again confirms the words of a great tune, in a New York minute, everything can change. Read more... (VIEW LINK)