The Manic Chinese Market Bodes Well For Our Long Chinese Consumer/Short Chinese Exporters Trade

Global Alpha Sector Strategy’s intra-Chinese equity sector pair trade hit the 20% return mark. We recommend sticking with the trade, but raising the trailing stop. The Chinese stock market is in freefall, forcing the authorities to scramble daily … [More.]

Greece: It’s All About Debt Relief Now

Market reaction was fairly subdued following the weekend’s historic referendum that rejected the Troika’s offer. The ball is now in Greece’s court as the government must provide a new proposal. The key question is whether creditors are willing to offe … [More.]

Bond Market Liquidity Will Not Get Any Better

The deteriorating state of bond market liquidity has been a dominant concern among bond investors in 2015. Given how expensive it has become to enter and exit bond positions, especially in the cash market, there is a lot of investor angst over … [More.]

Greece Referendum: Bank Closure To Focus Minds

The weekend’s dramatic events in Greece have increased the probability of ‘Grexit’ from 5-10% to between 30-40%. Investors should be prepared for a risk-off environment as a market riot produced by a referendum or even an early election in Greece may … [More.]

Oil: Supply-Demand Imbalance

The rate of growth in demand for petroleum products is sputtering outside the U.S. In Emerging Markets (EM) economies, demand growth, which we proxy using non-OECD liquid fuels consumption, was up a little over 2% year-on-year (yoy) in May. … [More.]