Via Francesco Filia of Fasanara Capital
“Learn how to see. Realize that everything connects to everything else.” – Leonardo da Vinci
Hard data ceased to be a driver for markets, valuation metrics for bonds and equities which held valid for over a century are now deemed secondary. Narratives and money flows trump hard data, overwhelmingly.
"Something is off," warns RBC's head of cross-asset strategy Charlie McElligott in the introduction to his latest market noting that the swing in US fiscal policy optimism is coming at a critical time as the China's liquidity tightening is spooking the reflation story.
SUMMARY:
Authored by John Rubino via DollarCollapse.com,
Of all the mini-bubbles now inflating out there, maybe the least explicable is the race among emerging market companies to borrow dollars. This has gotten them – and their governments — in huge trouble so many times in the past (see the Mexican default of 1982 and the the Asian contagion of 1997) that you’d think dollar debt would be kind of a hot stove thing for Brazilians and Mexicans.
But no, they’re back at it:
The following article by David Haggith was first published on The Great Recession Blog:
Trump’s supporters are increasingly alarmed, outspoken and feeling betrayed as their champion rolls over and plays lap dog for the political establishment. Even Rush Limbaugh, Trump’s golfing buddy and longtime advocate, said this week that what is happening with Trump and the Republicans is a “sellout” and “betrayal.”
The US Trade Balance shrank to $43.7 billion in March, from an upward revised $43.8 billion in February, marking the month's deficit the smallest since October and less than the conesnus estimate of $44.5 billion. Imports declined by $1.7 billion, or 0.7%, to $234.7 billion, while exports dipped fractionally more, or 0.9%, even as the recently weaker dollar did little to boost US exports. Notably, the US trade deficit with China was $31.4 billion, followed by the European Union at $10 billion. The trade deficit excluding petroleum stood at $35.82b in March.