Category Archives: BRICs

The Comps of Doing Business in the G5 and BRICs

Posted on January 26, 2011 by macromon

The President spoke a lot about competitiveness in his State of the Union last night so we thought we’d do a little comparative analysis.  Sorry to throw so many charts at you but we think they’re a little more sexy … Continue reading →

Posted in BRICs, Charts, Economics, Japan | Tagged , , , | Leave a comment

Monetarism Redefined: Crude, Fine Wine & Gold

Posted on January 20, 2011 by macromon

“Inflation is Always and Everywhere a Monetary Phenomenon” – Milton Freidman Monetarism as a theory, which states that the variation in the money supply has major influences on national output in the short run and the price level over longer … Continue reading →

Posted in Black Swan Watch, Bonds, BRICs, Budget Deficit, Charts, China, Commodities, Credit, Crude Oil, Currency, Economics, Monetary Policy | Tagged , , , | 3 Comments

Targets of Yield-Seeking Capital

Posted on January 18, 2011 by macromon

This graph from the World Bank illustrates why Brazil is having such a problem with capital inflows.  Capital will always seek out the highest risk-adjusted return. During times of excess liquidity and low interest rates, however,  markets ignore or jettison … Continue reading →

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Shanghai Breaks 200-day, Commodites Next to Roll?

Posted on January 17, 2011 by macromon

During the 1990’s when the emerging markets were still emerging a friend of ours wrote a research report on pre-restructured busted Russian debt titled, No Rush to Buy, No Russians Buying.  The point was the Russians knew the prospects for … Continue reading →

Posted in Black Swan Watch, Bonds, BRICs, Budget Deficit, China, Commodities, Crude Oil, Currency, Economics, Geopolitical, Monetary Policy | Tagged , , | 3 Comments

The Week in Review: Waiting for Godot

Posted on January 15, 2011 by macromon

This market just won’t quit!  The S&P500 hasn’t had a one percent correction since November 23rd and those waiting for a better entry just keep waiting and waiting and waiting.  France’s CAC was the best weekly performer of the major … Continue reading →

Posted in Apple, Bonds, BRICs, Charts, China, Commodities, Energy, Equities, Euro, Week in Review | 1 Comment

Gold a Bubble? Think Again!

Posted on January 12, 2011 by macromon

Think gold is a bubble driven only by animal spirits and speculation?  We think not and have consistently maintained the fundamental driver of gold has been the massive accumulation of foreign exchange reserves by global central banks and their need … Continue reading →

Posted in BRICs, Commodities, Crude Oil, Gold | Tagged , | 13 Comments

2011 Risk: China Watch

Posted on January 7, 2011 by macromon

Getting China right in 2011 will make or break the P&L this year.   The direction of the China’s economy will determine the direction of many markets, including commodities and emerging equities. We’re still trying to get a handle on the … Continue reading →

Posted in BRICs, China, Economics, Monetary Policy, Sovereign Debt, Sovereign Risk | Tagged , , | 4 Comments

Yuan Set for Almost 10% Real Appreciation in 2010

Posted on December 30, 2010 by macromon

We find it interesting there is very little mention of China’s  real exchange rate in the media.  With official inflation in China set to outpace that in U.S. by 5 percent this year,  coupled with a nominal appreciation of the … Continue reading →

Posted in BRICs, China, Monetary Policy | Tagged , , , , , | 2 Comments

The Great Monetary Policy Swan Dive

Posted on December 28, 2010 by macromon

Great chart from the OECD illustrating the dramatic actions taken by the world’s major central banks during the financial crisis.   The massive collapse in short-term interest rates has reduced income of savers and the splash of the heavyweight central banks … Continue reading →

Posted in Bonds, BRICs, Charts, China, Monetary Policy, Policy | Tagged , , , , | 1 Comment

China Rate Hike: Four Markets to Watch

Posted on December 26, 2010 by macromon

Fearsome Foursome We’re watching the reaction in four markets to gauge how the Christmas gift from the Kings of the East will affect global risk appetite.   The People’s Bank of China increased both the benchmark lending rate by 25 basis … Continue reading →

Posted in Black Swan Watch, BRICs, Commodities, Crude Oil, Equities, Monetary Policy | Tagged , , , , , , , , , , | Leave a comment