7 December 2017: PSD2

Not many people are (yet) aware of PSD2. Is it a medical innovation, a new planet, an unknown mental disorder, a bird, a plane? No, it is part of European legislation. It is the revised Payment Services Directive of the European Union that will standardize payments across Europe. No need anymore for you, Spanish sausage maker, to wait days and days for a payment from that company in Lithuania to which you delivered a truck full of delicious chorizo ibérico. So, that’s good news. But more importantly: PSD2 will also “promote innovation in the payments space”, if you know what I mean. Our impression is that traditional banks should get very nervous. Generally, they are known for BHS1: bad service, high costs and slow processes. Companies from such sectors as hotels, taxi services and telecommunications know what disrupters like Airbnb, Uber and Skype are capable of. PSD2 will give newcomers, but also tech giants such as Apple, Facebook and Amazon, access to information about payments and financial transactions. You can be sure that they will be able to build ELF3: excellent service, low costs and fast processes. It is not something that will cause a bank run, but unhappy customers of traditional banks will walk out of the bank one at a time in the coming years.

white-chapel-logo-smallUS markets ended mixed on Wednesday: stocks in the energy sector were out of fashion and we saw a slight recovery in the technology sector. The S&P 500 ended essentially unchanged on the day: -0.01%. The Dow fell 40 points (-0.2%) and the NASDAQ gained 0.2%. Volatility eased: the VIX closed more than 4% lower, but most of the loss was made after the traditional stock markets had closed. UVXY ETFS (-0.4%) and XIV ETNs (+0.2%) saw little movement.
All of our models recorded a small gain. Danny Daredevil‘s RSS rose to just above 12%. Adventurous Anny saw her RSS climb to just below 15%. The RSS of Solid Suzy and Lazy Larry rose to well above 74%.
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 XIV 1 January 2016

12.10%

-72.19%

-19.54%

6%

Adventurous Anny XIV 6 March 2017

14.94%

14.94%

5.93%

20%

Solid Suzy XIV 6 March 2017

74.36%

74.36%

19.19%

109%

Lazy Larry
XIV 6 March 2017

74.36%

74.36%

19.19%

109%

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

 

RS_v05-small

Funny bone ticklers (I)

What: a chat between a man and a woman, both in their twenties
Where: a streetcar in Amsterdam

Man: “So what do you do for a living?”
Woman: “I am a part-time hypnotizer.”
Man: “A hypnotizer? Part-time? What do you mean?”
Woman: “Well, you know, people really don’t want to be hypnotized all the time.”

Leave a Reply

Your email address will not be published. Required fields are marked *