6 October 2016: Europe’s Taper Tantrum

pink-elephantAll of a sudden, the term is all over the place. Or at least in Europe: Taper Tantrum. The term is associated with 2013, when the Fed tapered off one of their programs of Quantitative Easing. Investors got scared and a panic broke out. “It’s a bit premature to talk about tapering,” said Vasileios Gkionakis, head of global FX strategy at Unicredit, to CNBC yesterday. Although it was a bit premature to talk about it, by mentioning taper tantrum, Gkionakis was in fact talking about it. Do not think of the pink elephant! Rumors are that the ECB is looking at winding back its trillion-dollar bond-buying program. With the Fed looking at raising interest rates, this becomes interesting. Come December, we might have two big elephants in the room. Will investors be able to look beyond the elephants (if that would be even possible…) or will the mere thought of two pink elephants in the room scare the hell out of them?

white-chapel-logo-smallYesterday, stock prices rebounded from the losses of the beginning of the week. All major US indices gained 0.5% on average. Volatility went down: the VIX lost almost 5% and our UVXY ETFs lost 1.5%. There were some good economic data which were appreciated by the market. Surprisingly enough, because they might give the Fed one more reason to raise interest rates in December, or even as soon as November.
White Chapel‘s return for the year dropped to below 200% and now stands at 197%. Return for the quarter is at -3%, after three days into the quarter at which it hasn’t made any progress. White Chapel thinks that investors should be aware that the level of stock prices is really too high. A correction seems logical to our model. So, White Chapel definitely did not give a signal at the end of yesterday’s session.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter





Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 324%.

ta_v05-small-invTim lives near a canal. And he has a fascination for pictures that contain mirror images of reality. At a dark night, a canal that is lit by streetlights, offers the opportunity to take perfectly symmetrical pictures. Tim has taken quite a few of these pictures over the years. Recently, he took a number of quick pictures with his iPhone at night, not all of them truly in focus. When browsing through these pictures, he noted something peculiar: all pictures showed perfect symmetry, except for one: the picture below.