I think people might be missing some of the nuance inherent in what’s happened to markets this month.
“…they’ve simply deleted the entire industrial economy from the dashboard.”
“That was fast.”
“…a ruinous fiscal deficit in excess of 15% of GDP will be Trump’s legacy.”
“…inflation risks are clearly shifting to the upside.”
That’s the question.
And so we waited, breathless.
If you’re looking for some confirmation bias for your still-bullish outlook…
Don’t say you weren’t warned.
“We have crossed the fiscal Rubicon.”
“Indeed, they are the proverbial elephants in the room, thereby giving rise to a considerable irony: To wit, the GOP party of the elephant, which is supposed to be the palladium of financial rectitude in American politics, has forgotten about them completely.”
“… if you are still in the Wall Street casino, run don’t walk toward the nearest emergency exit.”
“Donald Trump is walking himself right into a miserable trap. He and his putative “advisors” are apparently so blind to the severe headwinds facing the financial markets and the deep structural impairments plaguing the US economy that they have eagerly embraced a veritable fairy tale.”
After Tuesday, you might be in need of a palliative vis-à-vis your growing sense of angst about what effect the ongoing bond rout will have on your previously bulletproof collection of grossly overvalued equities.
“Somehow the Donald managed to say less during his 15 minutes of fame at Davos than even the swamp creatures he abhors might have offered up. But the pity of it is that the whole thrust of what he did say was dead wrong.”