China is creating a new Silk Road. Last Sunday, Chinese President Xi Jinping welcomed world leaders including Russia’s Vladimir Putin, Pakistani Prime Minister Nawaz Sharif and Myanmar’s Aung San Suu Kyi to Beijing for a two-day forum on ‘Yi dai yi lu’ (one belt, one road). This Belt and Road initiative is an immensely ambitious project that is aimed at boosting trade and economic growth across Asia and beyond. It will do so by building massive amounts of infrastructure which will connect China to countries around the globe. The total investment could be as much as one trillion dollar. Western countries were massively underrepresented at the meeting, but it is clear that Yi dai yi lu is another step in the balance shift of economic power that has been going on since the introduction of economic reforms by Deng Xiaoping in 1978.
The Dow and S&P 500 both snapped a streak of three weeks of gains last Friday, closing lower for the trading day and week. The NASDAQ, however, recorded a fourth week of gains. The Dow closed 0.11% lower and the S&P 500 fell 0.15%. The NASDAQ rose 0.09% and closed well above 6,100 points at 6,121.23. The VIX closed somewhat lower than a week ago at 10.40 points, but was well off its very low levels of below 10 points. UVXY ETFs and XIV ETNs closed almost unchanged. UVXY ETFs lost 0.03 points (-0.24%), whereas XIV ETNs gained 0.03 points (+0.04%).
Danny Daredevil‘s losses since the middle of April virtually stopped during last week. His RSS stands at 260%. Adventurous Anny is still waiting for a trading signal. Her RSS is 22%. Solid Suzy and Lazy Larry tried to reach a return of 20%, but did not quite make it: their RSS closed at 19.75% last Friday.
None of our models gave a trading signal at the end of yesterday’s session.
RSS = Return Since Start | YTD = Year-To-Date | QTD = Quarter-To-Date | AAR = Average Annual Return
After returning from his two-week holiday, René paid a short visit to his hidden forest retreat. Just before he left, he noticed an orange object on the corrugated roof. On closer inspection, this appeared to be two sledges, tied together with a rope. Given the place and the time, this surely made an enigmatic still life, raising questions like: Who put this here? And: To what end? But the sledges don’t give the answer. So, René decided to come up with his own explanation: this must be an alienating art installation, donated by an unknown artist, probably a tad ahead of his/her time, and rejected by one art gallery too many…