Author: Xeolyenomics | The Game of Economics

The Trump bull rally that has been raging in the past few months have come to a halt in June. Let us take a look at some of the significant events for the month and its complication. Mess at UK Election The UK Prime Minister Theresa May called for an election in a bid to strengthen her coalition going into the Brexit talks with the European Union. Her lead in polls have been derailed by a series of campaign communication errors and terrorist attacks, leading to the Conservative party in losing their parliamentary majority. Results:  The stock market barely blinked...

China is Recovering! Emerging Market Equities Soars! You may have read similar headlines in the past few weeks and may be tempted to jump onto the Emerging Market bandwagon to reap the returns. Afterall, Emerging Market equities have soared 18% this year and the trend seems to be unstoppable. Popular news channel are optimistic about the China reforms and Asia is where all the growth is after all. For those market watcher, you will get a feeling of deja vu. The reason behind, this trend of Emerging Market out-performance seems to be the recurring pattern for the past few...

The idea of business cycle investing is simple. Allocate more of your resource based on the different stages of the economy cycle. Invest in stock and property during the recession and early recovery of an economic cycle. Invest in commodities and financial related stock during the growth to stagnancy stage of the economic cycle as inflation and interest rates start to accelerate. The last stage whereby the economy swings back into recession is the time to hold on to cash and bonds. This simplistic assumption held true for the past century when United States is the sole super economic...

One and a half month after the inauguration of Donald Trump as the President of United States of America, the world is still trying to figure out his stand in foreign affairs. The immediate concern of the financial market right now, is to see whether President Trump is able to pull off his promise of lowering the US tax rate and increasing government spending at the same time. With US budget discussion in full force, the financial markets are scrutinizing his every single move to see how the debate will lead to. It is the promise of a Trump...

As we ease into the year of the Rooster, experts all over the year put in a piece of their opinion how the market will fare. As a part of our annual tradition, we shall turn to the world of metaphysics and Fengshui to give us an insight how 2017 will be. However, before that, let us take a look to see how Fengshui has been accurate in predicting 2016: The year of the unpredictable fire monkey (Yeah Donald Trump and Brexit!) From the looks of the two graphs, looks like Fengshui got most of the predictions wrong. But...

The month of October has been uncharacteristically quiet as the whole world turn their attention to the increasingly bitter US presidential election. The outbreak of a series of scandals related to how Donald Trump treat women has put the Republican nominee on an unfavorable front. However, team Clinton was again plagued by a resurfacing of the private email scandal initiated by the FBI when Hilary Clinton thought that she has put the matter to rest. The lead which Team Clinton built up over the past few weeks evaporated with new polls putting Team Clinton at a slight advantage. Investors,...

The post Brexit stock market rally is a familiar story for this economic cycle: “Ah sharks! Things are turning bad! Nevermind! The central bankers will save us again! Buy buy buy!” The stock market recovered sharply from the Brexit shock and in some markets, are trading in record territory. Other than the strong optimism that the central bankers will flood the market with cheap money again, there is another strong reason explaining the recent rise in the stock markets. In a world whereby yields are negative or close to zero for most of the low risk assets, investors have...