Thursday morning reads on the key issues affecting fundamental investors.
Currencies
- Avinash Persaud, currency expert, creates simple rules to distinguish pertinent central bank statements from the (mostly) meaningless drivel. (Enterprising Investor, video)
- Persaud also references his seven rules of foreign exchange that govern currency trading. (Gresham College, video)
- The yen strengthens on reports of weakening global growth and mild surplus in Japan in February. (World Bank)
China's Slowdown
- Dan Kurz, CFA, says the unwinding of China's unholy alliance with the United States is inevitable and has already begun. (Enterprising Investor)
- Macau is beginning to feel the pinch from China’s slowdown. (Businessweek)
Commodities
- Copper turns to backwardation. (Seeking Alpha)
- More upside for gold or gold miners? (Seeking Alpha)
Derivatives
- Was it inevitable? Options traders shift to bearish Facebook bets. (Barron's)
Euro Crisis
- How to save Spain. (Economist)
- The World Bank blasts the EU’s crisis management. (Der Spiegel)
Hedge Fund Money
- How Bill Ackman of Pershing Square won the fight over Canadian Pacific. (New York Times)
- Paulson, Dalio, and Ackman: Hedge fund legends tell all in new book. (Forbes)
Interest Rates and Central Banks
- Swiss government bond yields are signaling a de-pegging of Swiss franc against the euro. (Seeking Alpha)
- Proof positive that forecasts tell you nothing about the future but reveal much about the forecaster. (Zero Hedge)
Japanese Debt and Inflation
- Kyle Bass’s short on Japan shows why investing can be a lonely road. (Zero Hedge)
U.S. Stocks
- Not advocating P&G, just pointing out that its dividend yield now exceeds the bond yield on 10-yr Treasuries for the first time in 35 years. Wow. (Seeking Alpha)
Real Estate
- Hotel values continue to climb (about $13,000 per room on average). (National Real Estate Investor)
Time Capsule!
- Jim Grant reviewed Florida real estate for Forbes in 2005 at the peak of the crisis. Bravo, Mr. Grant. Bravo! (Forbes)
Macau cityscape image from Shutterstock.