“The time to repair the roof is when the sun is shining.” The chairman of the European Commission, Jean-Claude Juncker, wants to use Europe’s current prosperity to establish a much stronger European integration. He addressed the European Parliament in Strasbourg today by means of his State of the Union. Juncker wants more European countries to join the eurozone and to expand the number of countries in which the free movement of persons is possible (the so-called Schengen area). Furthermore, he promoted the expansion of the European Union in his speech. To economists, all these proposals will sound like music to their ears. Lifting obstacles will result in economic growth. But events in the recent past (Brexit, the outcome of elections in various European countries) have shown that boosting economic success in Europe is not the only road to salvation. An expansion of the European Union that neglects sentiments and that goes too fast could have the opposite result: it could lead to a growing number of countries which feel uncomfortable with the monstrous organization that the European Union has grown into.
US markets prolonged the relief rally to a second consecutive trading session yesterday, as concerns over US hurricanes and North Korea had faded over the weekend. All three major indices reached fresh records, gaining about one-third of a percent. The Dow was up 0.28%, the S&P 500 and the NASDAQ both closed 0.34% higher. Volatility hovered around Monday’s levels before settling lower toward the closing hour of the trading session. The VIX closed 1.40% lower at 10.58. UVXY ETFs suffered once more, losing 5% for the day. XIV ETNs profited with a gain of 2.57%.
For Danny Daredevil, there seems to be no end to his woes. His RSS dropped by 8 percentage points to 58%. But he stays totally cool and collected, knowing that his ride has always been a much bumpier one than that of the other three models. Adventurous Anny’s RSS remained at 4%, as she is still holding cash. Both Solid Suzy and Lazy Larry are on the right side of the trade at the moment. Their RSS rose by more than 3 percentage points to just below 30%.
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
Amid all the commercial clutter that is today’s media landscape, Dutch public broadcaster VPRO is standing out as an entity all its own. René, a very selective TV viewer, probably would have ditched his TV set long ago, if it wasn’t for the VPRO. Their high quality documentaries alone are enough reason to sit down and to switch on your TV (and switch off your phone). In case you are interested in the ins and outs of blockchain technology (and/or cryptocurrencies like bitcoin, ethereum) and have 49 minutes to spend, their documentary Blockchain in the documentary television series Backlight is well worth your time.