Too Much Momentum?

Try fractional.

We back-tested a “fractional momentum” strategy that had an interesting premise. You can read about it here.

Markets this Week

Bonds up, stocks down.

Links

Soon, we’ll all be trading vol of vol of vol of vol of vol of vol of…

Emanuel Derman @EmanuelDerman

"A Stylized History of Volatility" -- to appear in FINANCE AND SOCIETY VOLUME 9, ISSUE 1, JUNE 2023 _________ Volatility is the propensity to continually change one’s current state, irrespective of the direction of the change … papers.ssrn.com/sol3/papers.cf…

Nobody knows nothin’

Central banks have not had to defeat a serious bout of inflation in 40 years, and few are confident they know whether officials have done too little, enough or too much with interest rates to date to ensure they can bring back price stability to advanced economies (FT)

What Are Eurodollars?

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Go west, go south, get out!

Norway’s wealth tax which is levied on all net fortunes greater than NKr1.7mn ($173,000) at a rate of 1.1 per cent for the richest has billionaires fleeing. (FT)

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Green energy, without nuclear, is a losing proposition.

The IEA’s annual report on coal forecasts global coal use is set to rise by 1.2 per cent this year, exceeding 8 billion tonnes in a single year for the first time and a previous record set in 2013. (theglobeandmail)

A windfall levy on oil companies, which was first introduced in May, has been increased to take the overall tax rate on North Sea producers from 40pc to 75pc until 2028. Now, producers are refusing to drill. (telegraph)

US Shale is levelling off. (bnnbloomberg)

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Is it finally happening?

CNBC-TV18 @CNBCTV18Live

#JustIn | The National Commission for Protection of Child Rights (@NCPCR_) issues #summons to Byju's CEO over allegations of hard selling its courses, exploiting students

moneycontrol.comNCPCR summons Byju’s CEO over charges of course hard-selling, student exploitationByju Raveendran has been asked to appear in person before the NCPCR at 2 pm on December 23.

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Caveat Emptor!

Michael Pettis @michaelxpettis

3/5 That's because Chinese financial markets don't offer the tools long-term or fundamental investors need to make investment decisions. Macroeconomic data is questionable, financial statements can't be trusted, and analysts are limited in what they can say.

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The end of globalization as we know it.

Morris Chang, founder & former chairman and CEO, of Taiwan Semiconductor Manufacturing Company (TSMC): thread

Alibaba, the Chinese tech giant, cannot buy some of the most advanced chip designs after Arm determined that the US and UK would not approve licences to export the technology to China. (FT)

U.S. lawmakers have introduced a bipartisan bill to sanction Chinese tech company Huawei Technologies Ltd and Chinese 5G companies, restricting them from accessing U.S. banks. (reuters)

The US Commerce Department added 36 entities to a U.S. export blacklist, including one of China’s largest chipmakers. (washingtonpost)

Japan has announced it will double its military spending in the next five years, citing threats posed by China and North Korea. (bbc)

Meme of the Week

@BlacklionCTA