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Daily Archives: August 2, 2013
Credit impulse in Asia and North America is negative
Credit revulsion is the rational response to the over-indulgence of the credit bubble. But moving away from credit means lower demand and weaker growth than most economists, central banks and politicians are currently forecasting. The dichotomy between European regulators’ push … Continue reading
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Another mean reversion candidate
The S&P 500 disconnected from real demand last fall on QE. Sustainable? This time different? Source: Chart source Bloomberg via zerohedge
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The reason we respect mean reversion
We bought interest sensitive, dividend paying equities in 2003 and 2009, after they had crashed lower by 50%. After soaring above reasonable value over the past three years on QE, we see evidence to suggest that the third price mean … Continue reading
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