- Good reasons to buy. Just yesterday we suggested that the UIS market remains attractive: people will want to load-up on the dollar, thereby injecting outside money into the America's "excess supply of money" aka excess demand for assets. Besides, the Fed is not tightening; even if it just leaves its balance sheet alone, there is still plenty of excess money around, money that ex definition must chase assets.
- Investment implication. Stocks are the favoured liquid asset class thanks to an improving Economic Time® - one that is conducive to earnings growth. Within these, focus on infrastructure, consumer cyclicals, transport, brokers and financial services, and defense.
- Simple filter. if you get the Financial Times (FT), then give this journalist some of your eyeball-time: Robin Harding. Just today out here in Hong Kong's issue he notes that "Job growth and inflation, which together show how closely the US has come to full employment, will decide when the Fed chooses to raise interest rates." The stronger that both variables are, the better America's earnings outlook. The October jobs report appears this Friday, 7th November; consumer prices are released on Thursday, 20th November. Good luck. Read more
Dr. Enzio von Pfeil
A seasoned global economist. Enzio von Pfeil’s skill lies in understanding macro-economics, the business cycle and business operations. Hong Kong-based Enzio von Pfeil has an international education which culminated in studying inter alia under Prof. Friedrich von Hayek. He has a distinguished 34+ year career (US, Germany, UK and Hong Kong) in macro-investment economics.
His understanding of currency, commodity, bond and equity movements as they relate to socio-political developments across the global economy, underscores the authority and integrity of his Economic Clock® Blog.
Author of five books, and with a 30-year global career as an investment economist in the USA, Germany, UK and Hong Kong, Enzio von Pfeil is a professional speaker and commentator on Reuters, Bloomberg and ChannelNews Asia on economic impacts on markets, industry sectors and corporations.