Tag Archive : Hope

/ Hope

It was another extremely strong day for the market, with small caps leading the charge. What was particularly impressive was breadth, which was around four-to-one positive.

The easy explanation for the strong market action is that there is renewed optimism about some sort of stimulus deal. No one knows what will happen, but it is widely believed that something will be passed sooner or later.

That is part of what is going on, but it is not just hope of stimulus that is driving the buying. There is a high level of liquidity combined with reasonably priced stocks and poorly positioned market players. We are climbing the wall of worry, while at the same time expecting some solid earnings reports.

The easiest way to navigate this market is to stay focused on the price action and not to try too hard to compose a narrative to explain it. You can

Read More

A solar power plant co-owned by Longi Green Energy Technology Co. and China Three Gorges Corp. in Tongchuan, Shaanxi Province, China operates on July 20, 2020.

Photographer: Qilai Shen/Bloomberg

After a week of far-reaching climate promises measured over decades, four of the world’s six largest economies have now proposed ending dates for their carbon emissions.

President Xi Jinping’s surprise announcement at the annual United Nations climate meeting this week committed China to reaching carbon neutrality by 2060. That brings the third-biggest economy by nominal GDP into a loose but vitally important consensus with the second largest (EU), fourth largest (Japan), and fifth largest (California). The end of emissions has been set even if the target dates remain varied—and at least a generation into the future.

CHINA-POLITICS-UN

An image of Chinese President Xi Jinping appearing by video link at the United Nations 75th anniversary is projected on an outdoor

Read More