Nomura’s McElligott Is Back, Has ‘Bigly Updates’ (Quote)
Nomura's Charlie McElligott has a lot on his mind, but he's got "no long-form prose today", so his adoring faithful will have to be satisfied with a bullet point update on what he calls "a number of important developing trends and analogs."
The title of McElligott's Wednesday piece is - and I kid you not - "BIGLY UPDATES" (all caps in the original as usual).
Just what, you might ask, is so "bigly"? Well, a lot of things.
For one, Charlie notes that "Fed rate cut bets are accelerating again,
The world continues it’s self inflicted top heavy blunt forced trauma and the freak-out deepens. Central banks are telling us (with a straight face mind you) that all is well, at the same time buying gold bullion as fast as they can (2018 the most ever). I guess a lot of doors need to be stopped. The holes in the dike are getting harder and harder to plug.
The great brains of the Central Bankers are in quite a pickle, their boys in big bank land have taken their ball and gone home. Liquidity will continue to dry up and the am’t of QE needed to re-inflate these bubbles will REALLY put the middle class and lower folks on the totem pole under MORE stress than they already are. Inflation is NOT 2 fuking %. Tough sht right, it’s their own fault, right? Folks it’s their tax dollars just like it’s yours and mine that are funding this “Fu*K you I got mine, It’s not my fault you didn’t get yours” bank and corporate welfare debacle.
The “smartest guys in the room” are whining about 200 basis points and balance sheet run off is too much. Life was pretty fu*king good when $$$$ were as good as free, right boys. What a joke. Can’t QT, can’t QE (they will anyway) which will absolutely make the longer term even worse. It would be funny except it totally is dead serious.
Buy some physical gold and silver because many doors need to stay open.
Short gold, long bitcoin.
The dilemma, thanks to the QE wealth effect (amd all other emergrecy aid programs), is the lack of distribution despite the massive inflow of monetary aid. And so the Fed will become even more hyper-sensitive to inflation risk as its failure to wind down its balance sheet continues.
In the end not the wealth effect, but the waste effect…
Will everyone use Japanese ratios to justify their liquidity measures over the next decade?
Looks like Charlie is on the wrong side of the trade again. His 15 minutes of fame seem to be up.
you keep saying this, but it’s not clear what you’re talking about. you seem to be trying to cherry pick certain passages from research you haven’t actually seen (in its original format) and then match it up with certain ticks on futs intraday when it allows you to make a snide comment. that’s fine and all, but it can’t be taken seriously.
I mean, CTA flows don’t mean that stocks won’t dip on bad trade headlines. what kind of sense does that make?