"I Love it when a Plan comes Together"

Addendum to the Addendum of "50 shades of 25"

“I love it when a plan comes together.” - Colonel John “Hannibal” Smith, The A-Team

“I love it when a plant comes together.” - Le Shrub

Last week, following the 50bps Fed Rate Cut, we rejoiced that our “What If…it’s Time?” Playbook in buying beaten-up Miners and Energy was coming together nicely. But we also highlighted that there was another Catalyst ahead and that it could be a “Biggie”. Here’s what we wrote:

HOW IT STARTED:

Ahead of today’s “rare” PBOC conference, we even bought calls on China plays like FXI / JD / BIDU, alongside our Commodity and Energy plays…just in case…phew!

HOW IT’S GOING:

…and they are setting up a $113bn facility that will allow funds and insurance companies to tap liquidity from the Central Bank to purchase equities, PLUS a facility for listed companies and major shareholders to buy back shares and raise holdings. 

Here’s how a Bloomberg columnist commented on it:

…and another one…

For me, this was the key comment by the PBOC Governor: