Bill Gross Has Some “Brainteasers” For You And Eventually He’ll Say Something About Markets

“Equity markets are priced for too much hope, high yield bond markets for too much growth, and all asset prices elevated to artificial levels that only a model driven, historically biased investor would believe could lead to returns resembling the past six years, or the decades predating Lehman.”

“I’d Tax Every Benz,” “It’s A Corpse That Still Moves”: Are You Getting The Truth On Trade?

“At the same time, tariffs would weigh on US growth. If we assume that Mexico and China retaliate with equivalent tariffs, this would substantially reduce demand for US exports, depressing US GDP by around 0.7pp by 2019. In fact, tariffs would likely hit US GDP so sharply that the Federal Reserve would be prompted to reduce interest rates to cushion the blow—despite an increase in inflation.”

“Tweet Risk” Is Now Officially Part Of The Wall Street Lexicon

Analysts are now forced to take Trump’s tweets into account when commenting on the prospects for specific stocks. That, in turn, has led to the contention that idiosyncratic risk will almost invariably rise during Trump’s presidency. It’s thus very possible that Donald Trump could single-handedly bring about a shift in inter-market correlations.