Thursday: You Only Need One Chart

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.

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Trader: You’re “An Emotional Train Wreck” – But Buying-The-Dip Might Help

“Decide questions for yourself like whether global growth is expanding or not? At the end of the day is there likely to be additional or less quantitative easing pumped into the system? Are sovereign wealth funds apt to continue to increase their commitment to global equities or go back to sovereign debt coupon clipping?”

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Buy-The-Dip In Danger From “Politicians Who Want To Change The Liberal Order”

“Just as the Federal Reserve is finally taking the plunge, and as a new wave of politicians in the US and Europe look bent on redefining anything from haircuts and dress codes to the pillars of the Western liberal order, any talk of ‘mean reversion’ seems a bit out of sync.”

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“The Sky Is Falling”: When Stocks Go Down, Everyone Panics

“And don’t let anyone try to tell you that stock-market pullbacks, including modest ones, are something investors and policy makers can now handle with aplomb. You can calculate financial-conditions indices with all sorts of back-fitted weightings but when stocks go down, everyone still goes into “The sky is falling” mode.”

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One Bank Warns: The “Dark Side” Has Reappeared Just As “The Force” Looks Weak

“The dark side – protectionism – reappeared at the G20, just when the force – hope of a bold US fiscal plan – is looking weaker. This has hurt risk sentiment a bit, helping bonds find their feet. We see that as temporary profit taking on crowded trades, rather than a fullblown reversal.”

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