Business

As credit and equity markets continue to grind higher with monotonous regularity, as bloviators fret about politics and analysts await clarity on monetary and fiscal policy, Bloomberg's Cameron 'macroman' Crise is worried that "this might be as good as it gets for US investors."

As Crise explains, one of his favorite metrics is one-year trailing return to volatility ratios in major markets, which mean-revert and thus can provide early warning signals for when things get extended.

Submitted by Dennis Miller via MillerOnTheMoney.com,

The Keynesians and the Capitalists are heading for an economic showdown at the O.K. Corral.

Just about 6 months from when the BC government introduced its 15% property tax for foreign buyers of homes in Vancouver, the verdict is out: The new tax has had significant impact on not only home prices in greater Vancouver; but has also resulted in a significant decline in the number of foreign buyers in that hot housing market.

IMMEDIATE GRATIFICATION

The new tax took effect on all transactions taking place from Aug 2, 2016 onwards. By October 28th, the government had reported receiving what one might term instant gratification. 

For those who said a March rate hike looks increasingly likely after today's blistering CPI report, which saw inflation printing at the highest in nearly 5 years, you are not alone: moments ago Goldman's chief economist agreed that the "firm CPI may bring forward next rate increase", and said "as a result, we have revised up our subjective odds of a rate increase at the March FOMC meeting to 30% (from 20%), and now see it as a close call whether the committee raises rates over the next two meetings or waits until mid-year"

Trump did it again: one week after he promised to unveil "phenomenal" tax cuts, moments ago in his meeting with retail CEOs, who are meeting with the president to get him to kill the border adjustment tax idea, he pulled another OPEC, using the precise word the algos were looking for, and this time said that "tax reform is one of the best opportunities to really impact our economy," Trump said. "So we're doing a massive tax plan that's coming along really well."