Business

Authored by Mike Krieger via Liberty Blitzkrieg blog,

Having turned over the past few months from reflationist, to increasingly skeptical of the whole reflation impulse scenario - mostly on the back of China's infamous credit impulse crashing - RBC's Charlie McElligott takes a look at the three "negative narratives" that are gradually emerging for the markets. But before listing them, here is his latest summary of where the increasingly more confused market finds itself:

From "The Battle Of Who Could Care Less" by Charlie McElligott

Having gone all-in on a Hillary Clinton victory ahead of the elections, Saudi Arabia has quickly pivoted in its "appreciation" of the Trump administration, and having realized that the fastest way to Trump's heart is through the US Treasury's bank account, it is preparing to invest an "unprecedented" amount of money in the US. According to Bloomberg, the Kingdom’s sovereign wealth fund will announce plans to "deploy as much as $40 billion into U.S. infrastructure." The investment will likely be unveiled as early as next week when Trump is scheduled to visit the kingdom.

The “Trump trade” in U.S. stocks that was spurred by President Donald Trump’s November election has come and gone, according to Tony Dwyer, Canaccord Genuity Group Inc.’s chief market strategist.

It was April 2014 and global equity markets were breathing a sigh of relief as Greece just returned to the international bond markets "proof that the country was recovering from the crisis." 18 months later, Greek stocks had crashed 70%, yields had exploded and bailout 3 (or 4) was necessary. Whichbrings us to today... WSJ reports that Greece Eyes Bond Sale Amid Optimism Over Debt Deal.

Here is the Boston Globe from April 11 2014: