Both energy and industrialization of China related:  China to Cut Retail Fuel Prices at WSJ.  “Car makers are falling over themselves to get a slice of the action in China, the world’s biggest market.”  Telegraph

The structural economic problems are huge, real and weigh heavily on sentiment (Hussman Funds).  But a thought process going around suggests auto’s and housing, yes those red-headed step children, might contribute meaningfully in a positive fashion going forward:  Econbrowser.  Before laughing, continue reading.

Indeed, auto sales are on track to be the best since 2007:  “Strong June sales…prompting analysts to revise their consensus forecast of  13.9 million upward, to 14.2 million.”  Detroit News

Additionally, for ten consecutive months the construction sector has shown year-over-year job growth:  WSJ.  I believe residential rents have begun a secular climb with stellar fundamentals.  Supply is so tight for decent rental housing that it is almost impossible to find, demand is pent up, and market psychology has shifted:  WSJ.  Even homeowner equity has improved after collapsing:  Mortgage News.

Meanwhile, seems everyone wants easy money.  Fed’s Evans Supports More Aggressive Action to Aid Weak Economy at WSJ.  China’s Wen says policy fine-tuning needed to spur growth at Reuters.  Remember, ever more stimulus is required to keep the party going:  Ritholtz.

“He is probably the most successful long-term performer in the hedge-fund industry who has managed to stay out of the spotlight.”  A nice little write-up on Seth Klarman:  Economist.

“Given that China’s nominal GDP has soared at double digit rates for decades, why is anyone surprised Chinese house prices have risen rapidly?”  Money Illusion.  India’s is having a tough year, but expectations going forward are strong:  India Times.