Where will your money be safe?

Comparison of various safe haven assets, YTD, May 24th 2012

As Europe continues to mire about in crisis, China slows, Japan gets downgraded and the Swiss maintain their controversial Euro / Swiss Franc peg a curious thing is happening; money is flowing into America and the US Dollar and only America and the US [...]

US Dollar why so strong?

US Dollar, 2011 to March, 2012

As the chart above illustrates, the US Dollar has exhibited some unusual strength as of late. Of course many point to renewed optimism about the US economy and the well-known Eurozone problems as drivers. As I’ve mentioned before, America has its economic own problems (and plenty of them!) [...]

The Swiss Franc and gold

Spot price of gold, reflecting date of Swiss Franc / Euro peg on September 6th 2011

Yesterday’s resignation of the Swiss Central Bank’s Chairman, Philipp M. Hildebrand, has focused attention on the less than four month old Swiss Franc / Euro peg.

The peg, established on September 6th 2011, locks the exchange rate at [...]

Q4 2011 was a losing quarter for gold …

Gold monthly with quarterly return analysis, 1990 to 2011

A lot of has been said about gold’s Q4 2011 loss. George Soro sees a bear market developing for gold, while The Chinese are trying to dampen down speculation, moving gold trading to “authorised” exchanges.

Conflicting signals to be sure, so how significant was gold’s [...]

The Greek slow speed bank run picks up speed …

The data provided by Bank of Greece is monthly and published two months in arrears but the fact that deposits are shrinking is unavoidable. The bank run in Greece is starting to attract wider attention even as billions of Euros move to the safety of Swiss banks.


Well someone had to say it …

“The concept of risk free no longer exists” — UBS CEO Sergio Ermotti.

Well, someone had to say it. Until recently risk free meant risk free, but now there are several flavours of risk free.

This does, of course, present all sorts of problems for our quantitative models. And don’t think America is [...]