Andreas is the former Global Chief Strategist at Nordea Bank and the founder and CEO of Steno Research, an independent research house based in Copenhagen, Denmark. He is also a MarketReader investor and started the episode with a short conversation about the power of MarketReader.
The Purpose of MarketReader
“MarketReader is built to answer really the most basic question that all investors have when they’re watching their portfolio: why is it moving, why is Exxon down today? Why is Microsoft up today?” Jens said. “And we built a piece of software that essentially tries to do what the most sophisticated trading desks try to do.”
An Exxon Mobil movement made on July 3rd is due to correlation with the Energy Select Sector SPDR Fund.
To learn more about MarketReader and how it can help you better understand the stock market, join the Early Access Community to receive an invitation to MarketReader’s upcoming webinar on July 11 at 3:00 PM EST hosted by Jens and MarketReader CTO Web Begole.
Macro Discussion: Euro, China, and More
In the macro discussion portion of the episode, Andreas challenged Jens on his field of expertise with one of today’s most difficult questions in foreign exchange: how is the Euro still so resilient despite negative data? Jens said that the resiliency comes from two main aspects: recovery from the European energy crisis and global fixed income trends.
“Energy prices are just way lower than almost anybody imagined, considering that the war is still going on and Russian supplies have not recovered,” Jens said. “…And it’s always hard to know exactly how long a recovery process is and how much risk premium we really have.”
Another surprise that has factored into the Euro’s speedy recovery are the big trends in global fixed income. Most recently, interest rates have skyrocketed and helped recover the Euro further. Jens said that if 18 months ago somebody had asked if it were possible to have interest rates in the Euro zone above 4%, “almost anybody would have said [that’s] pretty much impossible, and we have that [now].”
In this episode, Jens also commented on the effects that China’s reopening may have on Europe, Bank of Japan’s potential changes to yield curve control, and whether or not his views have changed since writing his book The Fall of the Euro in 2013.