Another Strong Opinion By Christopher Wood

Christopher Wood, the strategist at CLSA Asia-Pacific Markets, had another masterpiece of strong opinion in his appreciated "Greed & Fear" publication, that deserves to be quoted:

The above is a critical tactical point since in GREED & fear’s view policy in America has now become the key variable for Wall Street since the US, like China, is now an increasingly command-driven economy where government initiatives are driving such growth as exists. Investors in Asia are used to viewing China’s stock market as at least as policy driven as earnings driven. Investors should now do the same when looking at America. Investors will, for example, become nervous if they start to think that the Fed will actually end next March its programmes of buying US mortgage agency debt and mortgage-backed securities, as it has said it intends to. Remember that the Fed has so far bought US$925bn of US agency mortgage-backed securities since it began in January the related programmes of quantitative easing and so called “credit easing”.

We just miss the Mr. Lenin in play ...