Authored by Nick Giambruno via InternationalMan.com,
It’s predictable…
A government in need of cash will turn to destructive “solutions.”
Money printing, higher taxes, and more regulations often come first. Unfortunately, these are just the hors d’oeuvres before a 10-course meal.
Authored by Giulio Metti via The Gatestone Institute,
As we have pointed out numerous times, Goldman notes that elevated US policy uncertainty and geopolitical risk indicate heightened risk of more frequent political and geopolitical tail events, in the form of both ‘known unknowns’ or ‘unknown unknowns’...
And given the extreme complacency in markets, Goldman suggests the following trade as a clean way to play that concept of reality emerging into market pricing once again...
Which equity option strategies work in low volatility markets?
One of the reasons for the recent historic flattening in yield curves is not just the ongoing disappointment in inflation prints which have missed expectations for the past three months, but also the ECB's recent sharp downward revision to its inflation forecasts, which as it revealed in its latest policy meeting, were cut across the board, with HICP now expected to drop from 1.6% to 1.3% in 2018, sending Bund yields tumbling.
That the sharp drop took place even with the ECB's balance sheet rising to record highs of €4.232 trillion as of the latest week...