The bear case: How Trumponomics keeps me awake at night

Preface: Explaining our market timing models We maintain several market timing models, each with differing time horizons. The "Ultimate Market Timing Model" is a long-term market timing model based on the research outlined in our post, Building the ultimate market timing model. This model tends to generate only a handful of signals each decade. The Trend Model is...

Going on recession watch, but don’t panic!

Preface: Explaining our market timing models We maintain several market timing models, each with differing time horizons. The "Ultimate Market Timing Model" is a long-term market timing model based on the research outlined in our post, Building the ultimate market timing model. This model tends to generate only a handful of signals each decade. The...

Is Chinese growth stalling?

I have long had much respect for the folks at Lombard Street Research (LSR) for their unusual non-consensus calls. Back in the days of the Tech Bubble when everyone was focused on the likes of Cisco Systems, Lucent, Nokia and other technology darlings, they had said "watch China" as the next engine of growth. That...

Should China emulate America? Or the other way around?

For your weekend contemplation: This post isn't about how the American and Chinese economies may converge, but about the potential development path of capital markets and regulatory regimes. CNBC recently reported that Charles Schwab and the Shanghai Advanced Institute of Finance conducted a survey of Chinese stock investors and found out the reason the Chinese...

What’s spooking the stock market?

Mid-week market update: No, it isn't just a more hawkish Federal Reserve that's spooking the stock market. Stock prices were been falling before Fedspeak and the latest FOMC minutes sounded a more hawkish tone. The SPX staged a successful test of its 2040 neckline support of its head and shoulders pattern today. In fact, today`s action...

Waiting for the storm to pass

Preface: Explaining our market timing models We maintain several market timing models, each with differing time horizons. The "Ultimate Market Timing Model" is a long-term market timing model based on research outlined in our post Building the ultimate market timing model. This model tends to generate only a handful of signals each decade. The Trend...

Big Trouble with 5-year China?

China's latest five-year plan seems to be a big hit. What's more, the most recent growth slowdown is abating, the stock market is recovering, but my indicators are suggesting that, despite all of the glowing rhetoric, the economy is taking a step back in its path towards re-balancing growth towards the household sector. Five-year plan...

A modest proposal for the PBoC

The specter of currency wars and competitive devaluation is in the air. Evan Soltas recently penned a post at FT Alphaville addressing the issue of how petrostates can solve their fiscal woes. The answer was either fiscal austerity or devaluation. The Telegraph reported that the World Bank was urging Saudi Arabia to use its currency...

China turns Japanese?

I haven't written much about China lately, but I continue to get questions. So I thought that it was time to summarize my big picture thoughts on China here. Riding a motorcycle at 100mph without a helmet There is much to cover so I will just go through the highlights. There is no question that...