CLIENT TALKING POINTS
Japan
Heli-Ben IV ran out of fuel overnight – Yen ramped +1.5% to $104.23 and the Nikkei resumed its crash, closing down -1.4% to -21.6% from the Global Equity #Bubble high of 2015. Reiterating the short on Japanese Equities; fighting the BOJ continues to work as the #BeliefSystem continues to break-down.
Italy
“so”… ze pension funds of Italy are going to provide around 500M Euros in ze “bank rescue” money… cool – remember when Hank Paulson realized he needed a bigger bazooka (and it scared markets instead of propping them up?); Italy’s stock market smoked another -1.8% on the “news”, taking its crash to -31.7% from 2015 Global Equity high.
Oil
Complete amnesia required for the Dollar Down, Oil up, Earnings “have bottomed” narrative … Oil down another -1% WTI this am signals immediate-term TRADE oversold, but this remains a bearish TREND call @Hedgeye vs. Long Gold.
TOP LONG IDEAS
GLD
Gold (GLD) = Protection from global currency devaluation and inflation/down USD – You can travel anywhere on earth and get a quote in local currency.
TLT
Long Bonds (TLT) = #GrowthSlowing, yield curve compression.
TIP
Treasury Inflation-Protected Securities (TIP) = Combination of the above exposures.
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 7/25/16 | 67% | 0% | 3% | 10% | 12% | 8% |
| 7/26/16 | 64% | 2% | 4% | 12% | 10% | 8% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 7/25/16 | 67% | 0% | 9% | 30% | 36% | 24% |
| 7/26/16 | 64% | 6% | 12% | 36% | 30% | 24% |
THREE FOR THE ROAD
TWEET OF THE DAY
FLASHBACK | $WAB: Adding Short Wabtec To Best Ideas List app.hedgeye.com/insights/52587… via @HedgeyeIndstrls pic.twitter.com/AaupJ2ER6s
@Hedgeye
QUOTE OF THE DAY
“Success is not final, failure is not fatal: it is the courage to continue that counts.”
-Winston Churchill
STAT OF THE DAY
Mark Teixeira is batting .184 this season.