Lately, it seems the short term moves in the markets defy my logic, text book economics and history combined. Economics and finance is essentially one big evolving experiment, where the outcomes can be so bewildering in the moment, yet so well understood in hindsight. I was left staggered yesterday when I saw UK GDP come out at 0.4% for the first quarter yesterday. The number was no surprise. But when I sat back and thought, where the heck is growth in the developed world ever coming from again, and why would anyone invest in large established companies linked to economies with such poor growth. Stocks trended higher on the news. Then to see this morning, Japan's keeping interest rates at -0.10%, their stocks losing -5% on the day and their currency gaining 3%, I again sit back and think, that actually isn't it the stocks you want to own, since that cash in the bank is going to cost you to hold it anyway, and the established companies in the stock market are at least doing or Read more... (VIEW LINK)
Running the Aimed Global Alpha - Macro Hedge Fund. Aussie. Trader. Investor. Coder. Cricketer. Skier. Surfer. Flyer. www.aimedcapital.com
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Great read, thanks for sharing.