Mon, 26th June 2017

Anirudh Sethi Report


Archives of “May 9, 2017” Day

Half Of Canadians Have $200 Or Less In Savings

Two months ago, when quoting the CEO of cell phone insurer Assurant, who appeared on Bloomberg TV to discuss business trends, one of his quotes caught our attention: “the reality is, half of Americans can’t afford to write a $500 check,” Colberg said. We decided to look into the CEO’s claim about the woeful state of US finances. What we found is that according to a recent Bankrate survey of 1,000 adults, 57% of Americans don’t have enough cash to cover a mere $500 unexpected expense. Turns out the CEO was right. And while that may appear dire, it is a slight improvement from 2016, when 63% of U.S. residents said they wouldn’t be able to handle such an expense.

The Bankrate survey findings echoed research published last year by the Federal Reserve, which found that 46% of respondents said they would be challenged to come up with even less, or $400, to cover an emergency expense, and would likely borrow or sell something to afford it. When the Fed asked what types of emergency expenses Americans had actually faced in the last year, more than one out of five cited a major unexpected medical expense. The average expense: $2,782, or almost seven times higher than the Fed’s hypothetical $400 surprise bill.

How does this stunning statistic compare to some other developed nations?

It turns out that the state of half of US finances, deplorable as it may be is positively shining, not to mention “twice as good”, when compared to the country’s neighbor to the north, where a recent Ipsos survey on behalf of accounting firm MNP, found that more than half of Canadians are living within $200 per month of not being able to pay all their bills or meet their debt obligations. Needless to say, if $500 in savings is bad, half that amount is outright bizarre.

Bitcoin Soars Over $1700 – 2017’s Best-Performing Currency

Bitcoin is now up for 16 of the last 18 days, soaring over 50% in the last month and up almost 90% in 2017 – making its the year’s best performing currency.

There appears to be no specitic catalyst for today’s move as the surge in Japanese interest  and news that Russia is considering, like Japan just did, to allow cryptocurrencies as a legal payment method are outweighing fears over ‘hard forks’, SEC rejections, and Chinese crackdowns.

Fitch expecting Chinese steel production to remain stable in 2017

US ratings agency out with a note on China and steel prices 9 May

  • stable Chinese output will exert downward pressure on global steel prices
  • Chinese steel exports to remain at around 100mln tonnes
  • consumption also likely to remain flat
  • China’s  steel and coal capacity cut targets will be tough to hit
  • Chinese coal and steel sectors likely to remain oversupplied in medium term which will limit upside in international prices

Jeff Gundlach Explains Why It’s Time To Sell US Stocks, Buy Emerging Markets

One year ago at the Ira Sohn investor conference, DoubleLine CEO Jeffrey Gundlach caused a stir when he predicted that Donald Trump would win the presidential election, something virtually no other asset manager or pundit agreed with. Gundlach was right.

This year, Gundlach’s Sohn presentation was more whimsical and eclectic even if he focused on more mundane financial topics, touching on the recent scramble into passive investing via ETFs and indexes, then turning to markets and observing that US equity valuations have become stretched on numerous metrics, one of which is the value of the S&P 500 relative to US GDP which has risen to historic highs that have even exceeded the dot-com bubble…