CLIENT TALKING POINTS
YEN
Kuroda came down from the Japanese heavens and reminded us that he can part the seas – “negative rates have not reached their limit” – but the day trade of short Yen may have! Another +1.6% Yen ramp in his face; #ouchy day for the #BeliefSystem.
China
Remember we used to talk about global #GrowthSlowing (Ex-USA for one more GDP print this morning)… China, Europe, Oil? Let’s just ex-that-out in Q3 ok? Chinese stocks down another -0.5% overnight (Hang Seng -1.3%) w/ CNOOC leading the way this time (Shanghai Comp remains in #crash mode, -41% from the 2015 Global Equity #Bubble Top).
OIL
Double #ouchy here - don’t look now by this morning’s drop towards the $40-handle for WTI puts it down -15% in the last month alone; was it the Dollar? Supply? Demand? A bird or a plane? with Durable Goods and Capex careening to the downside, the bullish narrative on “Global Cyclical Demand has bottomed” is very hard to follow.
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 | |
|---|---|---|---|---|---|---|
| 7/28/16 | 66% | 2% | 6% | 8% | 8% | 10% |
| 7/29/16 | 66% | 4% | 6% | 6% | 6% | 12% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 7/28/16 | 66% | 6% | 18% | 24% | 24% | 30% |
| 7/29/16 | 66% | 12% | 18% | 18% | 18% | 36% |
THREE FOR THE ROAD
TWEET OF THE DAY
BREAKING: #Fed leaves rates unchanged in the 0.25% to 0.5% range. pic.twitter.com/UwNCUNNF8b
@Hedgeye
QUOTE OF THE DAY
"Tower, this is Ghost Rider requesting a flyby."
-Top Gun
STAT OF THE DAY
Bobby Bonilla hit 287 homeruns over his 16 year MLB career.