2013

Emerging economies are reeling as rising US bond yields are squeezing the most vulnerable and funding intensive parts of the market. But the squeeze in EM yields is merely an hors d'oeuvre to what is likely waiting in the wings.

Bank Indonesia has fallen far behind the curve in its currency management tactics. After fairly steady intervention kept USD/IDR trading near the 10,000 area from May through early August, the authorities have been allowing the pair to move…

Based on the data from the Federal Reserve Bank of St. Louis here is a single chart that shows credit growth in the US is continuing to decline while the Fed's balance sheet is expanding.

The P/E ratio is a statistic that, while all-encompassing, can be misleading in determining under- and overvaluation. Nonetheless regarding valuation it can be a useful guide in context.

I have been saying for two years now that Nokia is toast because it has hitched its wagon to an also-ran in the smartphone race. The only out for the company is a takeover by Microsoft and now this is done. Will it work though?

The X-axis is the change in the spot currencies against the dollar since late May. The Y-axis is the change in the local 5-year debt. It is a useful way to conceptualize what has happened from a total return perspective. Korea, Czech,…

India is about to get a new new central bank governor, Raghuram Rajan, a University of Chicago economist with outstanding academic credentials. He is expected to start this Thursday, smack in the middle of a financial crisis the likes of…

News links for 30 Aug 2013

My caution on U.S. markets is based not just on technical factors coming from the crisis in emerging markets and the longstanging lack of a market correction. I am also concerned that interest rates have started to rise against a backdrop…

News links for 29 Aug 2013