1 Nov 2021

When last did someone bring up the Austrian 100yr Bond? Last year in March 2020 2 billion Euro of debt was issued at 0.25% for a 100yrs. Can you imagine what holders of these bonds must going through right now. They have lost 64% of their initial investment if one marks to market the current value of the bonds.

Japan is in the papers at the moment as Prime Minister Fumio Kishida held onto his power according to the latest election results. We all know that Japan has been one of the biggest proponents of manipulating the yield curve with zero rate bonds for decades. In case you forgot Japan is the 3rd largest economy in the world so it is worth taking note of and If you were wondering how their stock market has behaved with all this excessive government debt, then take a look at the chart below.  The Nikkei is still down 25% from its All Time High (ATH) it set in January 1990 more than 30yrs ago.

The thing I love about company founders is that they can say and do things that typical corporate bureaucrats can’t as they are always too busy worrying about keeping their position in the company.

In this tweet Elon Musk says that if director of the UN’s World Food Program can show him how $6bn can solve world hunger he will donate the money immediately. I just love it. Here is a guy who doesn’t mess around and bother with formalities. He is talking billions of dollars in a Twitter thread. 

While on the subject of Tesla have any of you heard of a “retail trader” from Singapore Leo KoGuan? Don’t stress if you haven’t because almost nobody has. He claims to have started trading in 2019. He was by then already a billionaire but quite amazingly he has quietly become the 3rd largest shareholder in Tesla and has made a whopping $6 billion on the trade so far.

Finally don’t ask me why but I am suddenly keeping a close watch on Oil. In the Brent chart below I see we hit some resistance from a downward sloping trend line. I wouldn’t be surprised if we some profit taking from the strong rally. I believe a weaker China as reflected by the latest Manufacturing PMI of 49.1 might play into a bit of price weakness.

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