Deutsche Bank Presents: An Updated Guide To The Low Vol Regime

“If there was sufficient loss of political support in the US for many of Trump’s policies such that the chance of successful execution falls towards zero, then central banks may need to return to the forefront of the deflation battle. Central Bank support for the economy was starting to lose credibility amongst some investors last year.”

BofAML: The Idea That Stocks Will Continue To Rise Is “Wishful Thinking”

“With US companies seemingly reluctant to make major decisions on hiring and investment ahead of tax reform, with tightened financial conditions starting to bite into Chinese domestic demand, and with an escalation of political risks across the globe, it seems to us that the equity market may be too complacent about downside risk to global growth.”

Why One Strategist Thinks “The Dollar Is About To Flex Its Muscles”

“Dollar bulls have had a rough go of it lately. After peaking in early January the greenback’s been on a one way train lower, one of many popular “Trump trades” gone awry. While there may have been a solid rationale for the dollar’s decline, I’d be wary of chasing it here. Conditions are brewing for a revival of the dollar’s fortunes.”

One Bank Says Trump Won’t Be Impeached … Yet

“To date no US President has been impeached by his own party, and given the highly charged partisan environment, we think that evidence of a breach deemed sufficient to trigger impeachment proceedings would have to be very robust. However, if there is a change in the composition of control in Congress post-Midterms and Democrats pick up significant seats, the political calculus could change.”

Is Another “Whatever It Takes” Moment Just Around The Corner?

“If markets turn more negative on the possibility of deposit flights out of the French banking system or on Italian BTPs and banks, the currency can fall more in the absence of a decisive response from the ECB. But, if the ECB were to show a strong hand in the market, buying sovereign debt, this perception could change.”