Archive for August, 2015

FT: Fed interest rate rise falls rapidly down the probability scale

According to Stephen Jen, head of currency hedge fund SLJ Macro, the Fed’s approach to raising rates is “the same strategy as Brussels towards Athens”.

“The most probable scenario is of us lingering in an uncertain state,” says Mr Jen. “The Fed wants to hike, but it doesn’t. It’s like me and my morning jog. I know what’s good for me, but I can’t bring myself to do it.”

Read the original article on the ‘FT’ website.

WSJ: Traders Increase Bets Against Yuan

Many investors believe that the yuan “could come under more selling pressure,” said Stephen Jen, managing partner of London-based hedge fund SLJ Macro Partners LLP. Mr. Jen expects the yuan to weaken a further 10% against the dollar this year.

Read the original article on the ‘WSJ’ website.

FT: Dollar regains firmer footing as China cuts rates

Stephen Jen, head of currency hedge fund SLJ Macro, said he believed the Fed had “long been overly dovish”, and would “probably use the recent developments as new excuses not to take action in September”.

Read the original article on the ‘FT’ website.

FT: Suck it and see — China’s sherbet lemon economy

Suppliers to the country know how hard it is on the outside.

The question is whether it is soft inside. Stephen Jen of hedge fund SLJ Macro thinks urban jobs show China having some success in switching from infrastructure and industry towards services and consumption.

Read the original article on the ‘FT’ website.

WSJ: Investors Brace for Further Tumult

Stephen Jen, managing partner at money manager SLJ Macro Partners LLP in London, said he is worried that the turmoil in emerging markets will continue to grow and that the selloff in risky assets could deepen and broaden later this year.

“I will watch the markets with more concerns than before mainly because [quantitative easing] has been in operation for too long and I am less sure if more morphine will do the trick,’’ said Mr. Jen, a former economist for the International Monetary Fund. “The world’s problems are mostly structural, which money-printing really could not solve.”

Read the original article on the ‘WSJ’ website.