Al3SUNDAY DIGEST

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The set of links below is aimed to help you stay on top of global investment trends, separating facts from opinions and real news from noise.  I have designed this to help people investing offshore to find and focus on the information that matters.  Enjoy your weekend!

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Las Vegas lands USD $1 Billion investment from Jia YueTing’s Faraday Future, US Home owners richer, Managing your investment Bias, Smart Fund managers on wrong side of Euro, Billionaires funding Clean Energy…

WKND_2015-12-06 Faraday Conceptrightnow_cn This year the state of Nevada already won the Tesla GigaFactory and just this week Faraday Future which is backed by Jia YueTing has chosen Las Vegas for its development center.  The best kept secret about investing in Las Vegas is that it is one of the most attractive cities to base a company in the United States.  Source:  CNBC 2015-12-09  Las Vegas Review Journal 2015-12-05

  • Economic policy expert Robert Lang sees a day in the not-too-distant future when attendees of the International Consumer Electronics show will sign up for a special tour to North Las Vegas to see Faraday Future’s new electric car manufacturing plant in North Las Vegas.
  • The North Las Vegas location has the benefit of inexpensive, developable virgin land, a friendly business environment with favorable tax benefits and incentives, and shipping resources that include easy interstate highway and rail access to Southern California ports.
  • One of Southern Nevada’s best assets is its transportation infrastructure, which is still under construction and will have more pieces in place if and when Faraday comes on line.  And eventually, I-11 will be a route to deep-water ports in Mexico.
  • Chinese billionaire Jia Yueting announced last year that his video company Leshi would start to make electric vehicles.  Faraday Future, backed by Jia, and counts former senior Tesla employees as its top executives, is planning to invest $1 billion in its U.S. operations which now includes Las Vegas.

San-Francisco-skyline-californiadata_point_cnU.S. Homeowners’ equity climbs to highest in nearly 10 years.  Marketwatch 2015-12-10

    • Owner’s equity rose 0.4% to 56.7%, the Federal Reserve said Thursday, the highest since the second quarter of 2006.
    • At their lowest point, they hit a bottom of 37% in the first quarter of 2009.
    • American economy continues to strength, and home equity will provide consumers a foundation to drive the economy.  For professional analysts in the financial sector, here is where the data comes from:  US Federal Reserve Q3 Report

AVOIDBIAS-672x300

education_cnManage your human biases to increase profits.  Don’t let narrow perceptions prevent you from investing in trends that will be hot in the future.  OASIS 2015-12-10

    • In today’s electronic markets, new trends start and finish much quicker because information is moving much faster.  And compared to years ago, your competition is not only smarter but also richer and will push popular investment trends with much more force than before.
    • To find the best risk-reward opportunities, you have to be good at controlling your biases and rational enough to go farther and deeper in markets the public is not yet chasing.
    • This week’s case study explores several mental biases with examples of how we at Oasis confronted them during our ventures. OASIS 2015-12-10

WKND_2015-12-06_EUR-USD Short ChartOpinion_cn“Smart” Money is wrong.  Euro currency gets short squeezed 4% higher in one trading session.  Are business owners and investors in China prepared to have the RMB move this fast? Think twice before trusting leveraged, high frequency, quantitative hedge funds….  

  • Evidence of Soros’ Theory of Reflexivity remaining prevalent in financial markets re-emerged this week as the euro made its biggest single day advance since the Fed’s announcement of QE in  2009.
  • the euro soared 4% due to misplaced and unfulfilled market expectations that the ECB would increase the size of its monthly asset purchases. The crowding out of euro-short algos was pivotal in the magnitude of the resulting short squeeze.  FXStreet 2015-12-06
  • CFTC speculative positioning data for the week ending 1st Dec, that leveraged funds went into last week’s ECB meeting carrying the largest net short EUR position since April.  FXStreet 2015-12-07
  • easy electronic access to the futures and FX currency markets have made it overly convenient to speculate in currencies. This, along with computerized algorithms, often work to temporarily push price to unsustainable levels. Realmoney.com 2015-12-04

WKND_2015-11-29 - WallStreet Journal Petcoright_nowU.S. Companies find it more attractive to be bought out rather than pursing IPO’s in a risky and volatile market.

  • Market fears and a booming M&A market have firms cutting IPO plans
  • U.S. companies are now dropping initial public offerings and selling themselves at the highest rate in three years.
  • All told, the dollar volume of U.S. IPOs this year has dropped 63% from the total in 2014 to $36 billion. At the same time, more than $2.3 trillion worth of merger and acquisition deals have been announced this year, a record pace that is up 46% from the total volume of 2014.   Wall Street Journal 2015-11-29 

Iron Ore price
data_pointIron Ore prices fall to a record low as slowdown in China and the global economy impacts demand  Market watch 2015-11-30

  • Iron ore futures on 30-Nov dropped below a closely watched level in Singapore trading — $40 a metric ton — for the first time ever.
  • Iron ore futures on a continuous basis on Nymex were down 2% on Monday, and they’re down 11% for the month and 40% for the year

Billionaires Paris

rightnow_cnBillionaires push for clean energy.  Bill Gates has joined forces with Jeff Bezos, Jack Ma, Mukesh Ambani and a roll call of other billionaires in a push for billions of dollars of new private and public investment in “clean energy”.. Financial Times 2015-11-30

  • The initiative includes $10bn of new spending commitments from 20 governments — among them the US, China, India and Brazil — and will be unveiled at the start of talks in Paris on Monday to create the first new global climate accord in 18 years.  Russia did not take part.

  • In addition to Mr Bezos of Amazon, Mr Ma, who built China’s Alibaba, and Mr Ambani, chairman of India’s Reliance Industries, the billionaires’ list includes Facebook’s Mark Zuckerberg, Ray Dalio of the Bridgewater hedge fund group, and Virgin Group’s Richard Branson.
  • Earlier this year Mr Gates told the Financial Times he planned to double his personal investment in innovative green technologies to $2bn over the next five years in an attempt to “bend the curve” in combating climate change.
  • The US accounts for half of the existing R&D spending — $5bn — and the Obama administration faces an uphill struggle getting approval for any climate-related funds from the Republican-controlled Congress.

Invest with us know your options  Contact Concierge Adeline
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Oasis Global Partners has been focused solely on helping serious investors in China to safely diversify their assets into North America and Europe.  Oasis investment groups and projects are strictly invitation only from trusted referral sources.  If you have received this message from a friend and wish to learn more, please have the person who referred you contact us.  We take pride in maintaining a tight knit and highly informed network of members, all of whom have a shared interest in diversifying their investments outside of China.

DESTINATION OF THE WEEK

HUMANITY-MSF

OASIS FULLY SUPPORTS MSF.org, more commonly known as “Doctors Without Borders”.  Médecins Sans Frontières was created in 1971, by a small group of French doctors and journalists who believed that all people have the right to medical care regardless of race, religion, creed or political affiliation, and that the needs of these people outweigh respect for national borders.  MSF assisted China on multiple occasions including the historic Sichuan earthquake.  For more information or to donate please click here.

On October 3rd 2015, the worst tragedy ever to happen to strike MSF happened when 14 of its medical and logistic staff were killed in Afghanistan by a U.S. military error.  It must not be forgotten that all of these highly skilled professionals were not just donating their time, but also risking their lives to be compassionate towards people in most need of help.