Things Just Got ‘Real’
An increasingly acute tightening impulse from a buoyant dollar and surging US real yields is turning the screws on risk assets.
The move crescendoed midway through this week, when five-year reals exceeded highs seen in June to reach levels not witnessed since 2019.
Falling commodity prices weighed on near-term inflation expectations, exacerbating the move, which was particularly acute in the two-year sector. This conjuncture is both a cause and a consequence of the stronger dollar.
Five-yea
The market is accentuating the tightening. Definitely not positive for risk assets. Something is going to be breaking soon.
Perhaps we will see something nasty coming out of Sand Hill Road. So much money poured into private equity structures over the past few years.
The Party’s Just Begun!
I am waiting on SPX 3800 to start loading up.
I’m waiting for tether to collapse and Tesla to touch $50, both are the “blue chips” of froth.