“When you are given immunity it probably means you’ve committed a crime.”
A little (possibly coordinated) help from i) a Fed that’s rolling out a cautiously hawkish message (again), ii) an ECB that’s suddenly walking back its hawkishness (i.e. leaning dovish – again), iii) some underwhelming inflation data out of Germany, iv) a subsequent widening of UST-Bund spreads, all conspiring to support the dollar, and just like that… f*cking presto… higher stocks as the reflation meme is viable again.
To be sure, we’ve all had a long time to prepare for Brexit. So long, in fact, that I no longer have to put the word Brexit in scare quotes. Thanks to the infinite wisdom of Nigel Farage (and a whole bunch of people who, based on Google Trends, didn’t have any idea what the EU was before they voted to leave it), Brexit is now a real proper noun.
We’ve talked so much in these pages about why cross-asset correlations matter that our (digital) pens are dry and our (virtual) voices are hoarse. On Thursday, Bloomberg proves they know this is “kind of a big deal.”