WHAT’S TRENDING NOW?

A roundup of news and long-term views on possible fundamental drivers

BY STEPHEN SCOTT

AUGUST 12, 2016

Longboard’s portfolio managers are long-term trend followers, so we make decisions solely based on a disciplined, rules-based process. But we often get questions from you about how current events potentially relate to certain long-term trends. Below is our team’s bi-weekly dive into the details.

VIX Extraordinary market intervention in China to stem declines E.U. continuing “kick the can” policy regarding Greece Historic collapse in volatility lead by new highs in U.S. equity market	U.S. EQUITIES Technology earnings growth Strong labor report showing strengthening economy Low interest rates causing investors to buy stocks for yield
WHEAT U.S. production double the 30-year average Nearly all the major wheat-growing regions on the planet reporting surplus production Global stocks of wheat will exceed international demand by more than 250 million tons this year	SILVER Increased central bank intervention devaluing traditional currencies Year-over-year production declines limiting supply More than 40% year-to-date gains attracting investors
BRITISH POUND Rates cut by BoE for the first time since 2009 BoE announces larger than expected round of QE Future ECB intervention seen as less effective, weakening valuation vs. euro	UTILITIES Worst of Brexit fears not materializing Low value of pound increasing profits for multi-nationals Low interest rates causing investors to buy stocks for yield