Are Rising Energy Prices The First Sign Of Greenflation?
Send us a textOver the last month the news has been dominated by stories of energy shortages around the world. China has seen major industrial output cuts caused by power outages over the last year, European gas prices are trading near record highs and the UK is reeling from the political fallout of a surge in energy prices. US oil prices rose to the highest level in seven years after OPEC and its allies declined to accelerate plans to increase crude production, snubbing calls from the White ...
5 Loka 202114min
What Does China's Crypto Ban Mean? Will Other Countries Follow Suit?
Send us a textIn the latest of a series of crypto crackdowns, Chinas central bank announced on Friday that overseas facilities offering cryptocurrency services inside China are “illegal”. It warned that any local staff who help these businesses operate, or even provide marketing and technical support, “shall be investigated”. This is the most direct crackdowns by a major regulator against “offshore” exchanges that have proliferated as interest among traders has boomed in Bitcoin, Ethereum, Do...
30 Syys 202117min
Evergrande & The Chinese Economy
Send us a textThe financial woes of Evergrande the once-mighty Chinese property developer highlight a showdown between two competing objectives for China's Communist Party. They aim to force China's private sector away from speculative and risky lending practices while avoiding a financial meltdown and the collapse of the property sector, in which more than 70% of the nation's urban wealth is locked up.Patrick's Books:Statistics For The Trading Floor: https://amzn.to/3eerLA0Derivatives ...
23 Syys 202116min
Evergrande Wealth Management Products - A Ponzi Scheme?
Send us a textIn an interview with local media, an Evergrande financial adviser said the products were a type of “supply chain finance”. While the money from retail investors may in years past have gone to its suppliers, the Evergrande executives in Shenzhen receiving retail investors said this was no longer the case.One of the executives of Evergrande’s wealth management division said Hubei Gangdun was just a shell company. “Proceeds from the Wealth Management Products have been used to brid...
22 Syys 20219min
Evergrande Crisis Intensifies
Send us a textThe liquidity crisis at Chinese property developer Evergrande shook global markets this morning with stocks falling in Asia, Europe and New York.The S&P 500 fell 2.1 per cent in afternoon trading, while the Nasdaq Composite slipped 2.6 per cent. The Vix, which measures expected volatility on the S&P, hit 26.5 — around its highest level since May.Monday’s sell-off came after shares in Evergrande, the world’s most indebted property developer, closed 10 per cent lower in Ho...
21 Syys 20219min
Evergrande - China Faces a Potential Lehman Moment
Send us a textThe implosion of Lehman Brothers, 13 years ago this week, showed the world how the collapse of a single company can send shockwaves around the world. Echoes from that event are resounding today as a massive Chinese property developer teeters on the brink of default.The collapse of Evergrande Real Estate Group - China's second-largest property developer with $310 billion of debt outstanding, could set off a chain reaction that spreads overseas.Wall Street is keeping a...
18 Syys 20219min
Investing In Collectibles - Are NFT's Digital Beanie Babies?
Send us a textThe Beanie Babies Bubble is a particularly entertaining story which highlights all the hallmarks of a mania. Mass delusion. Speculation. Out of control expectations. The herd mentality.Right now, it might appear that we are in another collectibles boom, in February this year, a Michael Jordan basketball card sold for $738,000 at auction. The exact same card had traded for more than half a million dollars less just a few weeks earlier. A Klon Centaur guitar effects pedal is being...
16 Syys 202115min
The Difference Between Trading And Investing
Send us a textIn today's podcast Patrick discusses the famous Warren Buffett quote “calling someone who trades actively in the market an investor “is like calling someone who repeatedly engages in one-night stands a romantic.” from his 1991 letter to investors.Topics covered are: what is the difference between trading and investing? Is one better than the other, and does it make sense to discourage short term trading? Patrick's Books:Statistics For The Trading Floor: https://amzn....
9 Syys 202113min
