It is the 20th of September 2019

News

China's "Bubble Prophet" Sees Unprecedented Surge In Home Prices

Beijing's ability and eagerness, to create and roll from one bubble, whether it is in housing, equities, commodities, cars, bitcoin and so on, into the next has been extensively documented, however, of all recurring bubbles to impact the Chinese economy, housing is by far the most important. The reason for that is that housing provides Chinese society with a dramatic wealth effect, far greater than the stock market, and as Deutsche Bank calculated in March, in 2016 the rise of property prices boosted household wealth in 37 tier 1 and tier 2 cities by CNY 24 trillion, almost twice their total disposable income of RMB12.9 trillion (fig.11).

Read More

"2016 Was Weird. Could 2017 Get Even Weirder?" - 10 Things That Won't Happen In 2017

Yesterday, in a mockery of economists' and strategists' recurring fascination with (wrong) year-end forecasts, we presented RBC's 7 "Costanza Trades" of 2017, or those trades which one would never, in their right mind, put on, which is precisely why in today's broken, upside down market, these are the trades one should seriously consider. Indicatively, last year's list of 10 such Costanza trades had 7 winners, some of which (long oil) returned as much as 41%.

Read More

Featured Apps