Macro Digest: Strategy Change - Neutral Risk to Negative Risk - The real "virus" is insolvency and unemployment
In this Macro Digest we look to change the strategy as we have a look at going long volatility and reducing overall risk allocation with that trade and with an increase of the cash allocation.
Macro Digest: Liquid Insolvent Markets
This morning's opinion piece from Gillian Tett of The Financial Times reminded me of something my friend Mark Voller said during a recent conversation in a macro conference call. When talking about the Japanese banking sector he made the remark that "they have been kept liquid insolvent for decades".
Steen's Chronicle: welcome back to the 1970s
In 1976, the author Astrid Lindgren of Pippi Longstockings fame incurred a 102% marginal tax rate by the Swedish Government, she countered by writing a satirical fairytale, "Pomperipossa in Monismania" - I think the title explains itself. She not only raised a fierce debate but also imparted a major loss on the Social Democratic government in elections later that year, as they lost power for the first time in 44 years.