Posted by paperplane > 2019-12-20 14:30 | Report Abuse

trade cautiously

Posted by paperplane > 2019-12-20 14:41 | Report Abuse

Dow up, S&P up, NAsdaq up.

GOLD ALSO UP!

Posted by teoct > 2019-12-20 14:58 | Report Abuse

Very interesting. I have pondered this question over many weeks now that the (bond) yield is now increasing - time to get out of bond and back to equity? Seem like not.

Thanks for sharing.

Posted by paperplane > 2019-12-23 14:45 | Report Abuse

no problem. But seems like many analysts or fund management houses suddenly turned positive....i will share Franklin articles later. Nice to read and digest their different views.

But my base case still recession downturn for 2020.

Posted by paperplane > 2019-12-30 14:23 | Report Abuse

https://www.zerohedge.com/economics/china-orders-stealth-rate-cut-swtiching-benchmark-lending-rate-lowering-funding-costs

CHINA IS TRYING TO AVOID A FINANCIAL CRISIS NOW

Posted by paperplane > 2019-12-30 14:24 | Report Abuse

Taipei Times noted that five regional banks have had "liquidity problems this year, raising the prospect of devastating debt bombs lurking in unexpected corners."

He Haifeng, director of the Institute of Financial Policy at the Chinese Academy of Social Science, said: "Appointing financial vice governors to provinces can help better integrate financial policies into local practice, and to prevent financial risks beforehand."

And while central banks around the world are cutting interest rates and pumping liquidity into markets on the premise of a return to global growth in 2020, China is currently preparing for a slowing economy and financial armageddon.

Posted by paperplane > 2019-12-30 14:25 | Report Abuse

And yet, a wholesale easing, such as cutting the benchmark rate, could potentially spark even more food inflation, setting off violent popular protests. After all, the Chinese population's patience is already running thin, forcing Beijing to scrap import tariffs on US pork exports, a move which Xi Jinping (and Trump) quickly spun as a trade war concession, but in reality was a matter of preserving the peace for China which is desperate for any sources of cheaper protein to keep its 1.4 billion people fed, and happy.

Posted by paperplane > 2019-12-30 14:26 | Report Abuse

In a statement, the PBOC said that financial institutions should stop using the old lending rate as the pricing reference for all credit from January, and gradually convert existing loans to a new base using the loan prime rate, from March to August. The one-year lending rate had provided the previous anchor for loans across the economy.

And since the PBOC is effectively forcing lenders to adopt a reference rate that is 20bps lower than the benchmark, Saturday's announcement is effectively stealth easing, and will lower costs for the roughly 152 trillion yuan ($21.7 trillion) in yuan-denominated outstanding loans held by financial institutions and boost economic growth, even though - as with most things in China - it does not involve a straightforward cut to interest rates.