Nikkei outperforming Australia

Nikkei to outperform 

Finally, after many months of Europe toying with markets, Eurozone leaders reluctantly decided to bail out Greece. Or at least that’s what they want people to believe – that this can’t continue, bailouts aren’t to be taken as standard, moral hazard etc etc. In reality, a bailout was always likely to happen, as the panic that would sweep through markets if they believe larger nations such as Italy wouldn’t receive funds would be crippling. They were lucky to get away with relatively minor reductions in future interest payments, though they’d have you believe they were tough enough to avoid real concessions that would create a bad precedent.

VIX set to Spike

VIX to Increase Short Term

For those that don’t know, the VIX represents the implied volatility expected to be realised in the S&P 500 over the next 30 days, and is also known as the ‘fear index’. For those that already know this, you’ve probably had a few fearful days trading the spikes recently, as the mini contracts as about as small as Jeremy Lin.

US Inflation Waiting to Spike

US Inflation Waiting to Spike

Apologies for the lengthy delay between posts recently. Relocating can be stressful at the best of times, but all should be well now. Apart from the medium term US economy that is. The world has a history of overlooking signs of impending doom, and whilst US debt levels aren’t doomsday material just yet, they certainly have the ability to cause a serious problem if they are not reigned in soon. The amount of money to be made in the US economy as a trend follower during the GFC, as supposed to a blindly optimistic follower, was phenomenal. I would have to kidnap John Paulson every single day for the next four years (to get his kidnap insurance of $10m) in order to make what he made during the GFC. A background is here for those that want it.