Moon Kil Woong - Comments
Executive Officer at SME
Moon Kil Woong is currently a VP at a SME. Previously he was a tech stock consultant, VP of Research at ING, and sell side Director at Crédit Agricole Indosuez. Moon Kil Woong has a Masters in Public Administration from SJSU. He contributes to both TalkMarkets and Seeking Alpha. You ...more
Latest Comments
Are Trump's Steel And Aluminum Tariffs Good For America?
7 years ago

If you want synthetic inflation and profit margin squeezes then these tariffs will help do the trick. Is it good for America? No. Tariffs and anti capitalistic trade protections are very bad for countries that run deficits and sell high margin value added products and brands overseas.

In this article: AKS, F, GM, NUE, BITCOMP, FCAU
US Will Be World's Largest Oil Producer By 2023, But There Is A Catch
7 years ago

Saudi Arabia's ability to increase production is overstated. They seem more concerned about not increasing it for fear of depleting their reserves as they become more transparent. It is amazing how much money has gone into increasing production at a loss which is why oil prices were hammered. The author is right that to increase production in the US requires more investment in shipping and processing, not drilling and speculating. Sadly, people are less likely to frenzy speculate on processing plants than drilling for some reason.

As with oil in the past, nothing ever goes according to plan. Those who own the big oil producers, keep holding them. They will be gold long before gold skyrockets.

In this article: OIL
Treasuries Have Sold Off As Rates Have Been Rising
7 years ago

That is not surprising. Maybe a stronger statement is that treasuries are selling off and thus rates are rising. It is the bad treasury auctions that drove the last dip in stock prices, not inflation. And it is poor treasury sales that are causing treasuries to lose value not the reverse.

Why We Need Rise-Up Economics, Not Trickle-Down
7 years ago

"Rise up economics" as the author describes really comes about from the free market, not from government or central bank action unless it has an offset of dollar depreciation and/or inflation. More needs to be done to encourage and free up small and medium sized businesses for one thing. Another thing is cutting paperwork and red tape that big businesses are more able to cope with than small entities. It's small and medium sized businesses that drive the US economy forward at a rapid pace more than anything else. It is also zirp and QE which has killed small and medium banks and businesses like crazy.

Cash Makes A Comeback
7 years ago

I think rather than short term rates going down, long term rates will rise to widen the spread even if the Federal reserve doesn't want them to. The recent rise in treasury yields came on buyers balking at existing rates, not the Federal Reserve raising them.

The Albatross Of Debt: The Stock Market's $67 Trillion Nightmare, Part 2
7 years ago

Sadly, David has very good points on what will cause a big calamity in the future. For the time being, the water works continue until there literally is no water. With government getting into the stimulus game with the recent tax cut without spending cut play, the bear will be forestalled for a while yet again. There is debate about cutting some government spending now, however, I wouldn't bet a lot on it especially a substantial cut. That said, keep an eye out and realize that a lot of debt is not sustainable at 3% higher rates. This is the reason why the Federal Reserve can't escape its zirpish policies quickly or easily.

Another Bitcoin Bottom Comes With An Important Signal
7 years ago

There are indeed dead Virtual Currencies. Just no one wants to talk about them, especially the ones who lost money in them. http://deadcoins.com/ Digital Currency List https://coinmarketcap.com/all/views/all/

In this article: BITCOMP
Your Bonds Aren’t Crashing
7 years ago

Agreed, however, hopefully you were smart and bought short term bonds and bonds that are safe and don't have high interest rates and high chances of default. If so, I'd exit the high yield risky bonds first. Most Treasury buyers have only been buying short term US Treasuries because almost no one doesn't know that the low rates US Treasuries currently hold are this low because the Federal reserve's artificial manipulation.

The reason why the yield isn't sticking anymore is because it's impossible to hold rates down if you are increasing the issuance of them due to massive increases in deficit spending. And it's impossible to hold the rates down when most of your debt is financed overseas and it's clear the currency risk exceeds the rate of interest the bonds pay.

The recent rise in rates is due to both these factors coming into play. I don't see anything but higher bond rates until at least one of these concerns become subdued with preventing the dollar from dropping further being the most likely issue to address. The weak dollar rhetoric from Washington should stop immediately.

In this article: AGG
"Automatic-Bidding" Is Fueling Bubbles In The Hottest Housing Markets
7 years ago

The whole housing purchasing and selling process should be reformed to be more efficient and more transparent. I look forward to the day when the over all commissions on home sales drops to under 1%.

Another Bitcoin Bottom Comes With An Important Signal
7 years ago

Indeed the interest in #bitcoin has died down considerably, although there is still a lot going on in #blockchain technology. One should look at the technology evolution not the quick concept of making some digital code and calling it money. If it were that easy everyone would be doing it. And that's what they were doing. That's why there are over 100 digital currencies and growing. The issue is why buy yours and who wants them when there are more popping out like weeds every day.

In this article: BITCOMP
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