Martin North – Page 147 – Digital Finance Analytics (DFA) Blog

Volatility Squared

We review the market action from Monday, with a focus on the US markets, as yields go higher, crypto lower, and the NASDAQ recovers for intra-day lows.

All of this signals more volatility ahead, as the expectation of US rate hikes continues to grow. But not all sectors are behaving in the same way.

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.

Catching A Falling Knife?

A quick look at the damage done on the Australian share market today. A global tech rout wreaked havoc on Australian shares on Thursday, triggering the worst sell-off on the local share-market in 16 months, amid fears the US Federal Reserve could begin to raise interest rates more aggressively than previously anticipated.

The S&P/ASX 200 Index tumbled 207.6 points, or 2.7 per cent, to 7358.3, declining for a second straight session, and wiping more than two weeks of gains, with only eight shares ending the day in positive territory.

Go to the Walk The World Universe at https://walktheworld.com.au/

The Markets ‘Running Off A Cliff’ Moment?

The archetypal cartoon picture of a character running off a cliff, legs cycling, and hanging in mid-air, until the truth dawns, and then falls, came to mind today as U.S. stocks fell sharply on Wednesday, with the NASDAQ plunging more than 3% in its biggest one-day percentage drop since February and it also represents the steepest slide to begin the first three days of a year in 13 years, when the financial crisis gripped the globe. So much for the hopeful note at the start of the New Year.

The S&P 500 fell more than 1%, its biggest daily percentage decline since Nov. 26, the first day of trading after news of the Omicron variant of the coronavirus. The Russell 2000 index also suffered its biggest one-day drop since Nov. 26, while the S&P 500 financials index fell 1.3%, a day after it registered an all-time closing high.

The reason, the release of the U.S. Federal Reserve meeting minutes which signaled the central bank may raise interest rates sooner than markets had expected. I have said before that the markets continue to believe the FED will save them, but, what if rates do rise harder and faster?

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.

The Evergrande Factor And Beyond

China Evergrande Group’s property sales plummeted in 2021 for the first time in at least a decade, as the giant developer slipped into default and buyer confidence faded. Evergrande, China’s second-biggest developer by sales in 2020, is the largest Chinese real estate developer by issuance of offshore, U.S. dollar-denominated debt, which stood at $19 billion last year.

A filing Tuesday showed the company’s contracted sales of properties totaled 443.02 billion yuan ($69.22 billion) last year, down 38.7% from the 723.25 billion yuan in contracted sales reported for 2020. It met about 60% of a 750 billion yuan target set at the start of the year.

More broadly, Chinese shares had their worst start to the new year since 2019, as investors took profit on some of their most successful bets in 2021.

Chinese stocks, hobbled by regulatory pressures and uneven economic growth, plummeted in 2021. The FXI China large-cap ETF fell 21% in its worst year since 2008. So the question is where to from here? Many investors are still seeing long term opportunity, as China is going to continue to be a big part of the global infrastructure. So the question is will investors be prepared to wait out the near-term turbulence. Will they stick with China?

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.

FINAL REMINDER: DFA Q&A 8pm Sydney Tonight: Tony Locantro – Plain Speaking!

Join us for a live discussion with Tony Locantro from Alto Capital a full service investment and corporate advisory firm. Tony will share some of his small cap analysis, as well as a broader perspective on the markets. You can ask a question live via YouTube Chat.