Posts made in October, 2018

Capital Flows

Posted By Darren Winters on Oct 31, 2018

Capital flows are the holy-grail of forecasting future asset prices. If a trader/investor can solve the puzzle of where capital flows into and out of next then he/she can forecast the trajectory of financial assets prices with a high degree of accuracy. The US 10 Year Treasury Note is the financial instrument that has the most impact on global capital flows. What are Treasuries and how do they have an impact on capital flows? A...

Real Estate Bubble

Posted By Darren Winters on Oct 27, 2018

The Real Estate Bubble Index (UBS) might be worth keeping on your investor’s radar. Trillions of dollars of money created by the central banks over the past decade have kept asset prices artificially buoyant and attracted speculative buying. For almost a decade traders/investors leveraged to their eyeballs with speculative (hot) capital made fast money courtesy of the central bank’s unprecedented monetary easing by buying...

Pot Stocks

Posted By Darren Winters on Oct 19, 2018

Pot stocks are giving investors a high (no pun intended). If you think successful investing is for the conservative-minded think again. A fund that benefits from pot stocks is up 30%. The best performing exchange-traded fund (ETF) over the past month is one that has benefited from a flurry of activity in the marijuana industry. ETFMG Alternative Harvest ETF, a pot stock fund, has almost doubled since August. There has been a bit of...

Fed chair’s higher loyalty

Posted By Darren Winters on Oct 13, 2018

The Fed chair’s higher loyalty goes beyond the elected person sitting behind the desk in the first oval office. The Fed is not a public institution, it is a private corporation with secret shareholders. So the Fed chair’s main objective will be to implement monetary policy that upholds, fortifies the wealth, power and influence of the Fed’s shareholders. The Fed chair’s higher loyalty is to its oligarch...

Rising Yields Trigger Risk Off

Posted By Darren Winters on Oct 12, 2018

When rising yields trigger risk-off then a stock-market sell-off typically unfolds. The theory goes something like this,as safe-haven assets, such as high-grade sovereign bonds yields rise, they become more attractive to investors. So demand for low-risk bonds with high yields rises as investors pile in to take advantage of the higher yields and relatively low risk to their capital. Income-seeking investors will move capital out of...