Time to convert the Central Banks’ blank checks into gold?

Posted on 27. Aug, 2012 by Jean Jacques Ohana in Weekly Focus

Following the release of the bad PMI numbers in China and the political gridlock in the Eurozone, financial markets have arrived at a critical juncture: either deflation or a new central-bank-engineered asset price rally.

The sudden surge of some key components of the precious metals constellation (represented in Figure 1), waking up from a long depression [...]

How to hedge against resurgent tensions in the Middle East

Posted on 20. Aug, 2012 by Jean Jacques Ohana in Weekly Focus

The market focus may shift towards the Middle East as Israel has made very clear its willingness to end up the Iranian nuclear program using all means at its disposal, including a unilateral military intervention. The Israeli Prime Minister, Benjamin Netanyahu, declared visiting U.S. Defense Secretary Leon Panetta on 1st August that “time is running [...]

The euro zone crisis: you can’t hide elephants in mouseholes

Posted on 17. Aug, 2012 by Jean Jacques Ohana in Weekly Focus

August 13, 2012
Mario Draghi recently intervened on behalf of the ECB, compensating for the current lack of political incentives across Europe. He announced an operation to support the short-term obligations of the Euro zone countries. This modest objective is by no means comparable to the Fed’s Quantitative Easing operations. The long lasting crisis affecting the [...]

The Italian “Drunken Boat”, on the verge of leaving the shore?

Posted on 10. Aug, 2012 by Jean Jacques Ohana in Weekly Focus

August 10, 2012

The recent monetary interventions are unlikely to have poured out the liquidity thirst of European markets and the schizophrenia symptom between risk-off and risk-on assets, that we recently documented, is still very much applicable. An extreme nervousness is indeed at stake in unsustainable financial markets which can alternate between +5% and -5% returns [...]