prudent investor newsletters

The art of economics consists in looking not merely at the immediate hut at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups—Henry Hazlitt

Monday, February 24, 2014

Explaining the Recent Sharp Volatility in the Peso

Last week’s rally came amidst a very volatile peso. While the Peso closed the week significantly higher to 44.565 per US dollar, Friday’s c...

Why Strong Economic Growth Hardly Equals Outsized Equity Returns

Bulls have been sold to the idea that economic growth equals hefty stock market returns. A recent report from Credit Suisse argues agai...

Emerging Market $2 trillion Carry Trade: The Pig in the Python

Last week, I reasoned that changes in US monetary policies and changes in the interest rate signals in the US will naturally force adjustme...

Japan’s Ticking Black Swan

And speaking of carry trade. There seems no other fantastic example than the Nikkei 225-Japanese Yen. The Nikkei Yen trade is a Bet on ...

Saturday, February 22, 2014

Behind Ukraine’s Bank Run

The emerging market Bank run has now spread to political crisis stricken Ukraine. From Bloomberg : Ukraine’s deadly clashes prompt...

Friday, February 21, 2014

This isn’t your granddaddy’s bond markets

Sovereign Man’s Simon Black puts my “grotesque mispricing of bonds via the convergence trade ” into perspective: (bold mine) This is re...

Consequences of Inflationism: Caracas (Venezuela) and Kiev (Ukraine) Burns

Sad to see of what seems as escalating political instability around the world (mostly in emerging markets). The backlash from hyperinfl...

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