The Insurrection Rally

The Insurrection Rally

Less than 24 hours after throngs of angry, armed Trump supporters stormed the US Capitol in what lawmakers on both sides of the aisle decried as an act of insurrection, every major US equity benchmark hit a new record high. While acknowledging that the situation in D.C. is the furthest thing from funny, there is undoubtedly something amusing about this headline: "Stocks surge to record highs after president incites armed insurrection against US government." Last week, as 2020 melted into 2021,
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4 thoughts on “The Insurrection Rally

  1. I hear that animals sometimes respond to earthquakes just before we begin to sense the event, coal-mine canaries, as it were. I wonder if the silent rumbles they hear are like the creaks and groans we hear in the macro hull of this economic ship. The stretching of the hull’s crossmembers (ie debt), combined with the torsion on the hull’s spars (ie. flow balancing) with the pelting of wash on the deck (ie. consumer sentiment), an apt metaphor for market risk.

    1. Nice metaphor.

      I’d been starting to wonder if the Bitcoin rally, especially as it’s become de correlated from gold, was partly driven by stealth de-dollarization flows, or at least offshoring in preparation to divest of USD. The volatility makes it a terrible FX/transfer vehicle for many investors, but there’s a lot of dark money out there, and if I needed to launder my loot or extricate my sanctioned assets, I’d probably be thinking of doing that before Congress takes a closer look at financial regulations.

      Just another creak of the timbers, perhaps.

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