Submitted by Mish Shedlock of MishTalk
In response to California Banker: Views from the Business Banker’s Chair I received a pair of emails from readers tuned into Virginia.
Livs in Virginia (LIV) writes …
Hi Mish
Richmond VA, where I live, is inundated with radio commercials to get rich quick by flipping houses. And I’ve seen articles in the paper about flippers. I, too, viewed this as being indicative of a top.
We’ve also seen a huge surge in new restaurants.
Another day, another warnings about China's fading credit impulse (see here in February, and Pimco most recently), and market complacency about what the recent monetary tightening and drop in commodity prices in Chinese markets means for global markets, this time from Citigroup.
Step aside Citi US Economic Surprise Index, which after a "surprising" streak of negative economic data, recently crashed to the lowest level since October 2016...
... and make way for Morgan Stanley's ARIA, a monthly US macro indicator based on data collected through primary research on key US sectors (consumer, autos, housing, employment, and business investment).
The U.S. economy is suffering from a major long-term problem: business investment is weak. Unless President Trump solves this problem, it will prove to be his Achilles’ heel.
It's Sunday morning, and as is customary for this time of the week, we present the best excerpts from the latest weekend note by one of our favorite market commentators, Eric Peters, CIO of One River Asset Management. Today we focus on what is currently the most controversial topic in capital markets, namely China, and how it could - and willl - impact not only the global reflation trade but risk assets across the world. Or rather, how it may, because as Peters puts it in the simplest possible terms, "no one has a model for this."