Monday Prayers & Month End Markets Thoughts
When you read religion thrown into the headlines with politics, you know there could be trouble ahead.
China is finally acknowledging their moral decline and obsession with money culture. Enough for their President Xi Jin Ping to hope for their traditional faiths of Confucianism, Taoism and Buddhism to come to the rescue.
Enough of fake drugs, poisoned milk and dead pigs, I suppose. Not to mention the corruption as widespread corruption is reported in the South China Morning Post this morning. http://www.scmp.com/news/china/article/1320892/chinese-inspectors-find-widespread-corruption-nationwide-check
I have often wondered why India does not face these problems to the degree that China does and over the years, have idly concluded that it is the issue of religion and the fear of heavenly recrimination.
The Italian Prime Minister, too, allegedly asked for a prayer for the country as it heads into an uncertain confidence vote later this week. This is before the German grand coalition is finalised.
Prayers are a slow but sure way of going to Heaven and given today’s Chinese PMI, it will be a long haul.
More bad news
* Tongyang Securities in Seoul Falls;Affiliate Filed for Court Receivership (STX Pan Ocean went bust mid year)
* OSX Says It’s Unaware of Move to File for Bankruptcy Protection
* Siemens CEO Kaeser Cuts 15,000 Jobs
Singaporean’s Are The Smartest In the World having the world’s highest average IQ, according to this website, although Mongolia is not far behind.
An exciting month end indeed with not many people thinking about it. I still go with my instinct that we will need to see some profits in some areas, like bonds, whilst equities have too much of a good run and can afford the correction.
The experts are all calling for an 11th hour cliff hanger deal tonight and that would be the happy Hollywood ending that we are used to.
I am still long VIX and Gold after last week which have performed favourably. Slightly loathe to let that go with the European uncertainty ahead.
USDJPY is a buy for now, with Abe and his sales tax coming up shortly. If the debt ceiling is resolved in time, 100 would be a sure bet.
Sitting on cash i.e. USD would still be the astute choice for an equity market correction coming up.