Waiting for the Big One

The Blind Squirrel's Monday Morning Notes, July 31st, 2023.

The 🐿️ thought he was going to catch ‘The Big One’ last week. Turns out he is going to have to wait. But that may turn out to be a good thing.

• The Bank of Japan’s ‘big move’ on YCC (Yield Curve Control) was more of a whimper than a bang. We think that, like the energy trade, the Old Bull, Young Bull also applies to positioning for a stronger Japanese Yen.

• A gradual shift in BoJ policy is, on balance, a positive for global asset markets. A sudden repatriation of Japan’s enormous stock of overseas savings risked creating major supply demand imbalances in global bond markets.

• We now see Yen revaluation being a multi-quarter process and feel confident that the seeds of that process have now been sown.

• Acorn Review: Is the China trade back on? Will the Aussie Dollar join that party? Copper looks like it is trying to run. Plus, some thoughts on uranium, Mercedes (and China EVs, grain markets (DBA 0.00%↑ , WEAT 0.00%↑) ,COIN 0.00%↑ and GS 0.00%↑.

Waiting for the Big One

I have no doubt that the performance of the 🐿️ portfolio …