6 July 2017: Booming Brabant

These Dutch Guys are located in the province of North Brabant, a province in the south of the Netherlands. This used to be a poor province inhabited by low-skilled farmers. But on the wings of industrialization, it has become one of the wealthiest and innovative parts of Western Europe. At the end of the last century and in the first years of the 2000’s, the term ‘Booming Brabant’ was often heard, but the credit crisis put an end to that. Its use in the media and among politicians is on the rise once again, however. The city of Eindhoven and its surroundings are the driving force behind the economic rise of Brabant. This region is home to such technology strongholds like ASML, NXP and Philips. Eindhoven’s economy is growing much faster than the Dutch economy and the Social and Economic Council of Brabant (SER Brabant) reported this Wednesday that the economy of Brabant is about to overheat: “The shortage of workers in technology, but also in construction and healthcare, is alarming.” There may be a solution for that, true to the nature of the region, according to SER Brabant: robot technology is a strong sector in Brabant. There are many workers needed to build, program and operate robots, however. (The blog posts by These Dutch Guys are still made by humans.)

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US stocks were not really going somewhere yesterday, except for tech stocks. The minutes of a Federal Reserve meeting did not give investors a clear indication of where the Fed is heading. The Dow closed almost unchanged, losing 0.01%. The S&P 500 recorded a small gain: +0.15%. The technology-heavy NASDAQ regained some of Monday’s losses, closing 0.67% higher. Volatility was going up and down during the trading day, but closed more or less unchanged. The VIX closed 1.3% lower, with XIV ETNs getting a marginal gain (0.12%) and UVXY ETFs losing somewhat more (-0.40%).
All of our models made a small gain. Danny Daredevil ‘s RSS rose to 330%. The RSS of Adventurous Anny rose to 37%. Solid Suzy and Lazy Larry saw their return since the start rise to 24%.
None of our models gave a trading signal at the end of yesterday’s session. We are expecting a trading signal for Danny and Anny soon, however.

Model Holds Start date

RSS

YTD

QTD

AAR

Danny Daredevil XIV 1 January 2016

329.76%

6.61%

-1.27%

162%

Adventurous Anny XIV 6 March 2017

36.89%

36.89%

-1.27%

156%

Solid Suzy XIV 6 March 2017

23.58%

23.58%

-1.27%

88%

Lazy Larry
XIV 6 March 2017

23.58%

23.58%

-1.27%

88%

RSS = Return Since Start | YTD = Year-To-Date | QTD = Quarter-To-Date | AAR = Average Annual Return

 

Ah, that carefree summer of 2016. How simple life was back then! Like every other year, not much was going on during the summer calm. In their blog post of 3 August that year, These Dutch Guys reported on this phenomenon, a.k.a. ‘komkommertijd‘ (cucumber time).
This year, things may turn out differently. A quick glimpse at today’s news headlines makes you wonder. With all the geopolitical turmoil in the world at the moment, it is very likely that ‘cucumber time’ will skip a year…