6 January 2017: To mark time

It looks like investors are marking time. They are unsure which direction the markets will go. Will the Trump rally get its second wind? Will people start taking money from the table, after the surge in stock prices we have seen in the last few months? Will we sail into the doldrums which will keep us in the same place for a longer period of time, awaiting the deeds of President Trump following the rhetoric of candidate and President-elect Trump? Will more traditional issues such as the state of the Chinese economy and corporate earnings put their weight on the sentiment of investors? Will Smith?

white-chapel-logo-smallUS stock markets showed only little movement yesterday. The S&P 500 closed somewhat lower (-0.1%) and the Dow and the NASDAQ somewhat higher (+0.2%). Our XIV ETNs only made a very modest gain: +0.25%. Return since the start added 1 percent point to 251.5%. Return for the year slightly improved to -12.8%.
White Chapel is not close to a trading signal, so we stick with our XIV ETNs.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$35,150

+251.50%

-12.80%

-12.8%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 244%.

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René’s Reflections @ Friday: Meh

Television. Personally, I could do without. As a matter of fact, I don’t even have a cable TV subscription, nor do I have a satellite receiver. And I don’t feel like I’m missing out on anything that these cable companies force feed their subscribers in the form of their digital packages, full of crap channels to zap through. Or, as Roger Waters put it concisely back in the seventies: “Got thirteen channels of s**t on the TV to choose from.” Not much has changed since then, except that the scale has increased by at least a factor of one hundred.
This is not to say that I don’t watch TV at all. Even without a subscription, I can receive the basic set of channels. Albeit a very small subset of all that is available commercially, and analog as well. But even that is much more than I ever need, considering the fact that I watch TV very selectively.
What I certainly don’t want to miss, is everything Charlie Brooker does on TV. When he’s on, no matter what or when, I will watch it. I especially like his yearly ‘wipes’, in which he delivers one hour of nonstop belly laughing about the ridiculousness of past year’s news. Although there was not so much news to laugh about, in his recent “2016 Wipe”, he made one observation I would like to share with you:
“Do you remember a few years ago, when people described absolutely everything as “Meh”? Everywhere you’d look on the internet, there it was: “Meh”. A big, bold shrug. We moaned that everything was sort of mediocre and blend. Not anymore. No. Now everything is either shit, or brilliant, and there’s no in between. And everyone’s furious. Stick your head in the internet now, and it’s like a f***** screaming convention. Blackheads versus redheads. It’s as if everyone has been radicalized.”
(The YouTube fragment can be watched here.)
I think Charlie’s nailed it, right there. And it makes me wonder, what impact this will have on stock market volatility. I can hardly wait!


Image by Nevit Dilmen, under CC BY 3.0