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Bob Elliott, co-founder / CIO at Unlimited, highlights ongoing challenges in China's economy, noting that official data suggest continued softness. According to Elliott, the country's deleveraging process appears to be deepening its economic malaise, and without the modest boost from chip exports, contraction across the broader economy would likely be evident.
Elliott has previously highlighted shifts across global markets. He pointed to reduced central bank gold buying as a factor behind recent market softness. In another note, he observed that the Japanese yen may be set for a reversal as short trades increased and economic conditions changed.