Copper prices are believed to be a leading indicator of economic health. We endeavour to verify this hypothesis through quantitative analysis thereby also focussing on the economies of Chile (principal producer) and China (principal consumer). We do believe in mean reversion although we acknowledge that imbalances can persist for very long times and that market structures can change permanently.
Monday, February 25, 2013
Major Foreign Holders of US Treasury Securities
The US treasury produces a handy list of major foreign holders of US securities which can be found here. As of September 30, 2012 the total was USD 5.5 trillion up from USD 5.0 trillon on December 31, 2012.
The distribution between the major foreign holders is shown in the following graph (total USD 5.5 trillion):
The countries fall within one or more of the following categories:
strong export nations
participant in competitive quantitative easing and currency devaluation
When looking at the change for the first three quarters in 2012 against the absolute value the following picture emerges (Asian countries in green and Latin American countries in yellow).
The increase of Switzerland and Japan are notable while China and the Oil Exporters remained at a stable level.