Collapsing currencies, bond bloodbaths, soaring cost of funds, and crumbling crude... Fuck that! Stock indices are at record highs!!!!
Some context for the recent moves...
With US Treasuries the most oversold since 2007, Bloomberg reports that bonds around the world are headed for their steepest two-week loss in at least 26 years as President-elect Donald Trump sends inflation expectations surging.
The Bloomberg Barclays Global Aggregate Index has fallen 4 percent in the period through Thursday.
In his interview with the Hollywood Reporter's Michael Wolff, Donald Trump's chief strategist, Steve Bannon made one particularly notable statement. When discussing his vision for the economy, he answered with the following explanation of how he views the interplay of monetary and fiscal policy under president Trump:
Submitted by Eric Bush via Gavekal Capital blog,
We all know that stocks are a leading indicator of economic growth and disappointingly recent breadth measures suggest that economic activity may slow over the next several months.
In the charts below, we show the percentage of stocks trading above the 200-day moving average for various market aggregates, regions and sectors (with a 1-quarter lead) against the 3-month moving average of the ISM Manufacturing Index.
With plain vanilla equities increasingly shunned by most retail investors for various reasons, an interesting transition was observed in the past year: Mom and Millannial traders have became "the new oil traders." The WSJ even had an article profiling this astounding shift in May.