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At the end of last week, markets were spooked by the Fed saying that they might need to raise rates a tad by the end of 2023. Given we had an inflation print of 5% a few weeks ago, this seems like stating the obvious. James Bullard, president of …

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Inflation is on the rise. What can I use to hedge?

There is quite a choice:

• $PFIX (more about interest rate risk),
• $IVOL (more about being long credit but with crash protection),
• $INFL (mix of commodities, real assets & equities with pricing power).

Talking about inflation, inflation hedges like $BTU, $EQR …

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Finally, things started moving. The Fed signalled that it is going to start hiking. And, implicitly (one assumes), tapering. This cause spike in the dollar index, DX, up by 1%. All commodities fell, in sympathy, with the exception of NG. Equities dropped by ~0.7% (SPX & ACWI). Bonds, though …

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Markets have been marking time for a month or so. The important prices have all been directionless for a month: the 10Y yield, the dollar index, LIBOR (via the Eurodollar futures …

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What’s it all about?

Everyone knows that inflation is coming. You can’t read a newspaper or look at an email newsletter without being reminded of that. The problem is that it’s difficult converting this knowledge into money. Maybe buy real assets: lumber, perhaps? But then you remember …

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Generally, a risk-on day. Crude up, equities up, bonds up, long-duration stocks outperform value. No obvious driver. Lots of coverage of a new motor in the Tesla Model S, which would take it to 200 mph, if only it had tyres and brakes and cooling that were of the …

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Who will hold the executive to account? (Part 94)

How to challenge your local council’s accounts.

According to Private Eye, this power has been hardly ever used. My feeling is that scrutiny of local councils is woefully inadequate. I don’t know if the current system is workable. It …

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G7 Minimum Corp. Tax Rate

Exactly how the system of global taxation is explored by Tax Watch UK, here. The proposal suggests taxing only “super profits,” i.e. those arising in excess of a 10% margin. The net result is that the new proposal barely changes the amount of corporation …

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The main action today was in crude. The near month future settled at over $70. It was $62 a month ago.

Equity markets were up, in parts. World markets were flat.

Energy generally was up, as were energy stocks. $BTU was up 11%! Starving energy companies of capital will …

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Nothing much happened. Commodities generally down, gold the exception. Lumber falling like timberrrrr. Bonds pretty much flat. DXY down 0.2%, matching EUR.USD. 10Y up 6bp. Most sectors down; exception is pharma (up 1.7%).

Twitter

Smaller oil companies are now at an 80-90% discount to their ATH …

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