1 December 2016: Not being heard

roeptoeterIn France, François Fillon was elected the new leader of Les Républicains this weekend. According to Jean-Pierre Le Goff, one of the most influential French sociologists, his election is the revenge of a group of voters who are not being heard in public space, who are not being represented in the media. The pattern is clear: this is what happened at the Brexit referendum and this is how Donald Trump got elected. And we can be sure that the outcome of the Italian constitutional referendum this Sunday will be influenced by Italians who feel the same. So far, financial markets have shown to be resilient to the political churn that has come with the rise of these unheard majorities. But how long will that be the case? The unpredictability of the new leaders elected and the effect of their nationalistic feelings on the global economy should one day be felt by investors.

white-chapel-logo-smallMajor US indices showed a differentiated picture yesterday: the Dow posted a (very) small gain, the S&P 500 made a small loss and the NASDAQ lost substantially. As a result, volatility was on the rise: the VIX rose more than 3%. The effect on our XIV ETNs was minor, however. They lost only 0.3%. Return for the year is floating around 320% for the eighth session in a row.
White Chapel did not give a signal at the end of yesterday’s trading session. Our XIV ETNs are still the way to go, as far as our model is concerned.

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 385%.


Yesterday, René was on his way to Belgium when he heard over the car radio that Belgian beer had been added to Unesco’s list of Intangible Cultural Heritage of Humanity. His initial reaction was one of surprise: “What on earth took them so long?” He would have lost a bet on it, assuming that Belgian beer was already included on that list for a long time. But better late than never.
Being a great admirer of not only Belgian beer, but also of Belgian culture in general, he was more than happy to hear that Belgium is now the first country with a beer tradition that is officially recognized by Unesco. In case you wonder: Why Belgium? Why not Germany? The United Kingdom? Czechoslovakia? Or the USA? René’s answer is: just visit Belgium if you can, and have a taste of one of the more than one thousand different local beers!