The header is meant to capture my feelings. Stocks around the world, particularly in the United States refuse to budge. Some make very creative and pseudo intellectual excuses for them.
While you are at it, Jason Zweig brings us an amazingly honest mutual fund disclosure. But, this Fund did not have a fairy tale ending, however. One more evidence that good values are hard to advocate as behaviour templates. Material success is far from guaranteed.
There are two peices of evidence of what constitutes ‘efficient makets’: one is about how analysts grovel in investor meetings. That was by Jason Zweig, based on research. The second is about systematic market movement ahead of public release of UK macro news. The solemn denials of foul play would be totally amusing, if they were not so cynical.
Indeed, we should continue to teach market efficiency to students.
If one saw the newspaper headlines and stories – like in the FT, NYT, to name just two – they seem like they won’t eat or sleep until and unless Trump is removed from office.
In the G-20 meeting in Germany, a past pledge to avoid trade protectionism is dropped, at the insistence of the United States, apparently. It is a big deal for many. One more stick to beat the Trump administration with. Countries have always been hypocritical on trade. China is the new champion of free trade and much openness! Go figure.
China is trying to make an example out of South Korea for its placement of THAAD missiles in the country. Wonder if Park’s impeachment has anything to do with this. She acquiesced in this missile shield whereas the Opposition is likely to go soft on it. Wheels within wheels.
South Korea has complained to the WTO about China actions. Not that China cares and not that those who wail about U.S. backtracking at the G-20 meeting care for intellectual consistency either.
There is no dearth of examples to point to intellectual inconsistency or vacuity. In another day and age, Adam Lerrick would be hailed as the answer to moral hazard – bailouts. He advocates bondholders taking hair cuts. But, now that he is being considered for the post of Treasury Undersecretary, he is the ‘prince of darkness’. According to who? Hedge funds and bond investors – the traditional constituents of New York Times!
In the meantime, Taiwan Defence Minister says that China has now deployed missiles that are precision targeted at the island. I was reminded of these observations in a blog post on U.S. – China – Taiwan:
It would be helpful if Obama explained to China the counter-narrative that even the U.S. “one China” policy consists of an evolution in how Washington conducts its policy, which is not bound by what Beijing dictates to other countries, and that U.S. policy is premised on the basis that Taiwan’s status is unsettled. Actually, U.S. policy is focused on the process, not outcome, with a resolution on the question of Taiwan that is peaceful and has the assent of Taiwan’s people. It would be helpful if Obama pointed to the crux of the problem as Beijing’s belligerence and lack of flexibility with Taipei. [Link]