The chart of the S&P 500, $SPX, shows a decline of 1.4% on Friday May 31, 2013, and a 1.1%, decline for the week. This comes as Credit, that is trust, literally collapsed in May 2013, as is seen in the chart of Aggregate Credit, AGG, trading lower parabolically lower in value.
The great ZIRP unwind commenced the week ending May 31, 2013, as the monetary policies of the world central banks have finally resulted in turning “money good” investments bad, beginning first with the interest rate sensitive stocks, such as Electric Utilities, XLU, and Real Estate, IYR, and with Asian banking stocks, FEFN.
The debt laden Electric Utilities, XLU, which were carry trade darlings, were left abandoned on the dance floor, as investors rushed to the exit doors, on a rapidly steepening 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the chart of the Steepner ETF, STPP, steepening, on the sharp rise in the Interest Rate on the US Yen Year Note, ^TNX.
The interest rate sensitive, Mortgage REITS, REM, such as IVR, traded strongly lower in value. The pursuit of yield, which came with the blow off top in Liberalism’s grand finale rally, and which was in large part seigniorage, that is moneyness of the US Federal Reserve, exhausting, turning Retail REITS, O, NNN, GGP, Residential REITS, REZ, Small Cap Real Estate, ROOF, Premium REITS, KBWY, Real Estate, IYR, Global Real Estate, DRW, Industrial REITS, FNIO, and Chinese Real Estate, TAO, sharply lower.
High Dividend Paying Australia Dividends, AUSE, traded lower on the sharp trade lower in the Australia Dollar, FXA, as well as the Australia Bank, WBK. India Earnings, EPI, traded lower on the strong trade lower in the Indian Rupee, ICN. . Brazil Financials, BRAF, traded sharply lower on the trade lower in the Brazilian Real, BZF. Investors derisked out of Telecom Stocks, IST, Energy Partnerships, AMJ, EMLP, and Emerging Market Dividends, EDIV.
And the souring of investment trust, competitive currency devaluation is underway, with the Major world Currencies, DBV, and Emerging Market Currencies, CEW, trading strongly lower, terminating Nation Investment, EFA, and Small Cap Nation Investment, IFSM .
During May 2013, Jesus Christ, acting in the administrative plan of God for the fullness and completion of the age of Liberalism, Ephesians 1:10, produced Peak Democratic Freedom, Peak Nation State Sovereignty, Peak Seigniorage, as is seen in Peak Money, VT, Peak Currencies, DBV, CEW, Peak Credit, AGG, and Peak Clientelism and Dependency as well; all of which came through what Doug Noland terms wildcat finance, that is through speculative leveraged, toxic credit, carry trade investment, producing Peak Peace and Peak Prosperity, all based on ever increasing moral hazard, and coming with great libertine and ponerous living. And, He is now introducing the age of Authoritarianism.
The great reflation trade, that is the EUR/JPY, seen in Action Forex EURJPY Weekly Report, as of June 1, 2013, and seen in the chart of FXE:FXY, is history, as the mother of all bears markets has started. Imagine the global economic chaos that is coming as this carry-trade unwinds.
A well known investment principle is that carry-trades depreciate funding currencies while they last, and appreciate them when they unwind. With the rise in the Japanese Yen, FXY, over the last two weeks, Large Cap Growth Stocks JKE, finally was the style loss leader of the day. Investors delveraged out of carry-trade investment in Japans’ KUB, Frances’ SNY, Switzerland’s ABB, NVS, RIG, WFT, SYT, Ireland’s COV, JHX, Netherland’s PHG, AML, UN, Brazil’s SID, Taiwan’s TSM, and America’s AMGN, IP, MON. Investors are no longer able to profit from investing in large cap growth companies. The chart of the S&P 500, $SPX, shows a decline of 1.4% on Friday May 31, 2013, and a 1.1%, decline for the week. The era of profitable investing in the S&P 500, SPY, which came via currency carry-trade investing and supported by junk debt, JNK, is done and over.
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The chart of the S&P 500, $SPX, shows a decline of 1.4% on Friday May 31, 2013, and a 1.1%, decline for the week. This comes as Credit, that is trust, literally collapsed in May 2013, as is seen in the chart of Aggregate Credit, AGG, trading lower parabolically lower in value.
The great ZIRP unwind commenced the week ending May 31, 2013, as the monetary policies of the world central banks have finally resulted in turning “money good” investments bad, beginning first with the interest rate sensitive stocks, such as Electric Utilities, XLU, and Real Estate, IYR, and with Asian banking stocks, FEFN.
The debt laden Electric Utilities, XLU, which were carry trade darlings, were left abandoned on the dance floor, as investors rushed to the exit doors, on a rapidly steepening 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the chart of the Steepner ETF, STPP, steepening, on the sharp rise in the Interest Rate on the US Yen Year Note, ^TNX.
The interest rate sensitive, Mortgage REITS, REM, such as IVR, traded strongly lower in value. The pursuit of yield, which came with the blow off top in Liberalism’s grand finale rally, and which was in large part seigniorage, that is moneyness of the US Federal Reserve, exhausting, turning Retail REITS, O, NNN, GGP, Residential REITS, REZ, Small Cap Real Estate, ROOF, Premium REITS, KBWY, Real Estate, IYR, Global Real Estate, DRW, Industrial REITS, FNIO, and Chinese Real Estate, TAO, sharply lower.
High Dividend Paying Australia Dividends, AUSE, traded lower on the sharp trade lower in the Australia Dollar, FXA, as well as the Australia Bank, WBK. India Earnings, EPI, traded lower on the strong trade lower in the Indian Rupee, ICN. . Brazil Financials, BRAF, traded sharply lower on the trade lower in the Brazilian Real, BZF. Investors derisked out of Telecom Stocks, IST, Energy Partnerships, AMJ, EMLP, and Emerging Market Dividends, EDIV.
And the souring of investment trust, competitive currency devaluation is underway, with the Major world Currencies, DBV, and Emerging Market Currencies, CEW, trading strongly lower, terminating Nation Investment, EFA, and Small Cap Nation Investment, IFSM .
During May 2013, Jesus Christ, acting in the administrative plan of God for the fullness and completion of the age of Liberalism, Ephesians 1:10, produced Peak Democratic Freedom, Peak Nation State Sovereignty, Peak Seigniorage, as is seen in Peak Money, VT, Peak Currencies, DBV, CEW, Peak Credit, AGG, and Peak Clientelism and Dependency as well; all of which came through what Doug Noland terms wildcat finance, that is through speculative leveraged, toxic credit, carry trade investment, producing Peak Peace and Peak Prosperity, all based on ever increasing moral hazard, and coming with great libertine and ponerous living. And, He is now introducing the age of Authoritarianism.
The great reflation trade, that is the EUR/JPY, seen in Action Forex EURJPY Weekly Report, as of June 1, 2013, and seen in the chart of FXE:FXY, is history, as the mother of all bears markets has started. Imagine the global economic chaos that is coming as this carry-trade unwinds.
A well known investment principle is that carry-trades depreciate funding currencies while they last, and appreciate them when they unwind. With the rise in the Japanese Yen, FXY, over the last two weeks, Large Cap Growth Stocks JKE, finally was the style loss leader of the day. Investors delveraged out of carry-trade investment in Japans’ KUB, Frances’ SNY, Switzerland’s ABB, NVS, RIG, WFT, SYT, Ireland’s COV, JHX, Netherland’s PHG, AML, UN, Brazil’s SID, Taiwan’s TSM, and America’s AMGN, IP, MON. Investors are no longer able to profit from investing in large cap growth companies. The chart of the S&P 500, $SPX, shows a decline of 1.4% on Friday May 31, 2013, and a 1.1%, decline for the week. The era of profitable investing in the S&P 500, SPY, which came via currency carry-trade investing and supported by junk debt, JNK, is done and over.
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