In a nutshell US Budget Deficit is someone else surplus. Was it too much? Well, the FED is trying to manage the situation. Higher inflation, higher interest rates and DSR (Debt Service ratio) across the board. Beneath the surface of higher nominal economic growth, evidences are mounting that things are not so rosy. Inflation...
Richard Werner (Princes of the Yen and...) is always on the top of my list. Take your time (less than 30 min) because it will help you get a clearer picture. One thought popped in my mind while watching. Could ultra low/negative interest rates policies induce a negative loop when...
Here is an interesting chart of the S&P 500 published by Zerohedge . It shows that since May 1st 2020, the price action of the S&P 500 index is taking place at night when trading volumes are low and robots are working quietly in the background. Overnight session is the futures...
A few years ago, ex Brazilian President Dilma Rousseff was impeached due to "fiscal crimes". History seems to rhyme and it looks like COVID 19 has induced an important shift similar to what she did. I doubt that anyone will be really held accountable as her in the future...
Credit markets are certainly among the most important to watch. The last decade has seen an impressive increase of the BBB segment. It represent about 60% of the estimated 6.4 trillion US investment grade market. Fixed income investors can easily access and diversify their risks through ETFs and other funds...
The money masters aka Central Bankers, have jointly rejoiced the "risk on" crowd. Let's not forget that they put us in that situation in the first place. The ECB has signaled that, in addition to QE, TLTROs (Targeted longer-term refinancing operations) will most probably take place sooner than expected. Japan is celebrating...
Making America Great Again the Trump's way is not a risk free political game. When Trump announced he was running for president, I said that he would win. Somehow, he is the icon of a renewed breed of politicians who have understood how to capitalize on the failures of the...
A few thoughts about the FED Fund rate need to be done. To me the debate is not much about Powell's change of mind set but what is the right rate. The impression is that the 2.4% level represents somehow the maximum price that an overleveraged economy and the world...
Central banks have no choice but....fear the markets. In my previous post I said “Many investors have felt the pinch in 2018 and the good news is that central banks can act upon.How much more pain is needed for central banks to take action? “. Well, that was fast! The day...
