19 October 2016: A good week

expectationsEarnings around the globe meet or sometimes exceed expectations these days. In China, a slew of data points to a stabilizing economy and in the US, results of a number of representative companies did not disappoint. It eases the mood of investors for the time being. This atmosphere of tranquility is very fragile, however. China’s growing debt remains something to be vigilant about and the (at the moment not so likely) possibility of Donald Trump becoming the next President of the United States is still not from the radar. This week will feel like a good week to investors, after the zigzag pattern of the last few weeks. But next week can be totally different…

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Better-than-expected corporate results helped US indices to make gains. The Dow, NASDAQ and S&P 500 rose 0.6% on average. Our recently acquired XIV ETNs profited and added 4.4%. Return for the year added 14 percentage points and now stands at 233%. Volatility eased and the VIX lost almost 6%.
White Chapel expects volatility to remain low the upcoming sessions and advises us to stick with our XIV ETNs. No trading signal was given by White Chapel at the end of yesterday’s session.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$33,276

+232.76%

+232.76%

+8.6%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 359%.

ta_v05-small-invAs part of the film salon on trust and fear, the movie Wuthering Heights (2011) was shown yesterday evening. Director Andrea Arnold created a movie that is very rich in contrast: tranquil landscapes are paired with the roughness of life as a peasant in the 19th century. The love of young Cathy and Heathcliff, a stranger who is adopted by Cathy’s father, falls victim to class differences and leads to mutual betrayal.
In the discussion afterwards, led by Tim, the focus was on Heathcliff, who was treated more as an animal than as a human being by most people. Only Cathy took care of the young boy and Heathcliff longed for her love and affection. But the loveless environment in which they both grew up, was not a good example for them to make their mutual feelings of love work.
The discussion ended in the now: although today’s society does not have much in common with the world of Wuthering Heights, why do we have so much trouble to accept strangers (i.c., refugees) in our world? Is distrust our primary reaction to new situations?