E High Tide

Observing Passover on Monday kept me from selling the shares hit by bad news from Friday, the foreign banks believed to have been hurt by the distress sale of holdings by Archegos Capital Markets Friday after a margin call. The family office with a seriously dangerous name (which the Financial Times said was a Greek reference to Jesus) was hit by margin calls exceeding its capital. While Crédit Suisse and Nomura issued warnings that their earnings this quarter will be chopped, other banks which do not have the excuse of having shut for the weekend before the news was known may have losses.

(I never studied Greek so I have no idea what Archegos means. My father, forced to study Latin and Greek in his German Gymnasium, insisted that I study a modern language. I got a Latin diploma from Radcliffe which I cannot read.)

The Monday good news was that the huge container ship blocking the Suez Canal was freed thanks to the moon causing a high tide. This somewhat reduced the up move of Chinese exporter shares which can use the belt and road railway to ship to European markets, and eventually to our side of the Atlantic. But it also boosted a further move to consolidate ownership by a South African company, making up perhaps for the loss of around the Cape shipments to avoid the Canal. As our stock market is closed on Friday it seemed wise to prepare a notification to our paid subscribers for Tuesday after the 2nd day of Passover ended Monday night, with another good side effect of the full moon. The Friday closure is a tradition on Wall Street. When I worked on the Senate Foreign Relations Committee for Republican Senator Clifford P. Case, the son of a pastor, he commented: “It is considered inappropriate to trade stocks when your god is being crucified.”

Business newspaper article

image source


*AIA Group of Hong Kong is buying the life insurance arm of Bank of East Asia, according to Citi which put a buy on AAIGF which is increasing its regional footprint. BEA has 140 banks in Asia. The stock gained 2.5% in Hong Kong trading.

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William K. 1 week ago Member's comment

As thorough and as well written as always, Thanks VL. And I hope that your pasover celebration was as fulfilling as it should be.