15 November 2017: Anti-dumping

Today, the European Parliament will vote on new EU legislation which determines whether or not goods can be sold below real cost within the European Union. Although this method is of a generic nature, it will mainly affect products from China. And the Asian giant is not amused. It is very likely that the EP will consent with the proposal. Many parliamentarians are convinced that China is guilty of dumping practices for which the country sacrifices living and working conditions. China has shown in the past that it is not slow in taking retaliatory measures. Don’t be surprised if 2018 will start with a trade war between the European Union and China.

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The mood has slightly changed in the US stock markets. The Dow and S&P 500 have finished in negative territory for three out of the past four trading sessions. Uncertainty around efforts to overhaul tax policy is still having its impact on stock prices. The Dow closed 0.13% lower, the S&P 500 fell 0.23% and the NASDAQ lost 0.29%. Volatility was once again on the rise: the VIX closed almost 1% higher. UVXY ETFs gained more than 1%, whereas XIV lost close to 1%.
Danny Daredevil was the only one of our four models which made a profit yesterday. His RSS rose to 34%. Adventurous Anny is still holding cash. Her RSS is standing at 15%. Solid Suzy and Lazy Larry had to take another small step back. Their RSS dropped to 61.5%.
None of our models gave a trading signal at the end of yesterday’s session.

Model Holds Start date

RSS

YTD

QTD

AAR

Danny Daredevil UVXY 1 January 2016

34.78%

-66.57%

-3.26%

17%

Adventurous Anny Cash 6 March 2017

15.37%

15.37%

6.34%

23%

Solid Suzy XIV 6 March 2017

61.50%

61.50%

10.41%

99%

Lazy Larry
XIV 6 March 2017

61.50%

61.50%

10.41%

99%

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

 

Meanwhile in Japan

Katazoe Beach, Oshima Island, Japan. A bright, calm, sunny day in November. The temperature is 20°C (68°F), the sea water temperature is a comfortable 19°C (66°F). If this would happen in the Netherlands, the beaches would be flooded with people, and all roads leading to the coast would be crowded. So René (being not particularly fond of big crowds) feared the worst while on his way to this beach on this beautiful day. Maybe it would be not much different here.
But he almost forgot that Japan is a country of contradictions, extremes and surprises. Despite the gorgeous weather, there was not a living soul around. Oshima Island actually appeared to be one of the quietest places René visited this time in Japan. In a country so densely populated as Japan, quiet places are hard to find anyway, and René certainly didn’t expect to find one here.
“Quiet Japan”. An idea for a thematic photo essay was born.