Comment of the Day
Video commentary for November 2nd 2022
A link to today's video commentary is posted in the Subscriber's Area.
Some of the topics discussed include: Fed hikes rates and releases a very hawkish statement, bond yields rise, Dow downside key, gold weakens, oil steady,
Wall Street Sees 'Devil's Bargain' in Powell's Rate Comments
This article from Bloomberg may be of interest to subscribers. Here is a section:
“This is a devil’s bargain,” said Steve Chiavarone, senior portfolio manager at Federated Hermes. “Size of rate hikes will likely fall, but terminal rate is likely higher -- the implication is a greater number of smaller rate hikes. That is not dovish.”
Eoin Treacy's view - Jay Powell said in plain English it is better to overtighten, and cut later, than to under tighten and risk allowing inflation to become entrenched. That’s about as hawkish as it gets. The Fed wants a recession and they will keep going until they kill demand.
Eoin's personal portfolio: stock market index shorts reopened
One of the questions subscribers ask most often is how to find details of my open trades. To make it easier I will simply repost the latest summary daily until there is a change.
Central banks haven't bought this much gold since 1967
This article from Quartz may be of interest to subscribers. Here is a section:
Turkey was the biggest buyer of gold during the quarter, followed by Uzbekistan (26.13 tons) and India (17.46 tons). Not all countries report their gold purchases regularly, so it’s difficult to know how much, for example, China and Russia bought during this same period.
India is also shoring up its gold reserves.
Indian consumers habitually purchase gold jewelry ahead of the festive season every October. But that aside, the Reserve Bank of India (RBI) bought 13 tons of gold in July and 4 tons in September, pushing its reserves to 785 tons, according to the WGC.
Eoin Treacy's view - Any foreign exchange and gold reserves Russia had overseas have been confiscated. That’s a big lesson for every country that is suspicious of NATO’s motives now and in the future. It is therefore reasonable for countries to favour gold over holding foreign currency because at least the gold is a physical entity that can be held internally. Nuclear weapons are now also a must have to defend against invasion for any country that holds opposing views to NATO.
NASCAR driver stuns racing world with a move learned from Nintendo GameCube
This article from arstechnica may be of interest to subscribers. Here is a section:
To understand the advantage of Chastain's move, a little knowledge of racing physics comes in handy. Typically, when taking a tight turn on a racetrack, drivers brake to counteract forces that push their cars toward the outside of the track. This braking action dramatically slows them down on the turn. This time, instead of slowing down for the turn, Chastain kept his car in fifth gear, hugged the wall, let go of the wheel, and allowed the wall to hold his car in place—no brakes necessary. That's how he passed five cars and set a 75-year lap record.
Eoin Treacy's view - I have all kinds of admiration for a guy who knew of a winning strategy from a computer game as a child and was willing to test the theory in real life at the potential cost of his own life.
The Chart Seminar London November 21st and 22nd 2022
We are living through fast moving markets so the next venue for The Chart Seminar will be November 21st and 22nd this year in London.
In the meantime, if you have any questions, would like to attend, or have a suggestion for another venue please feel to reach out to Sarah at sarah@fullertreacymoney.com.
The full rate for The Chart Seminar is £1799 + VAT. (Please note US, Australian and Asian delegates, as non-EU residents are not liable for VAT). Annual subscribers are offered a discounted rate of £850. Anyone booking more than one place can also avail of the £850 rate for the second and subsequent delegates.