COP26 confirmed that the world is moving away from fossil fuels. OPEC’s high prices have made this move easier to afford by causing artificial shortages.
Governments have failed to properly protect their populations from the pandemic. Some have actively encouraged it, the rest have simply been incompetent. Today, their failure to vaccinate the world means poorer countries are now acting as a petri-dish – enabling …
Rising interest rates will continue weighing on equities. Since 2009, the Fed has focused on financial markets, hoping to impact jobs and growth.
Markets are starting to realise you can’t have a V-shaped recovery without rising inflation and bond yields
Our move to become “cautiously bearish” on the S&P 500 proved prescient.
Markets are starting to realise that Biden’s focus is on improving the lives of working and middle-class Americans, not new S&P records.
Hedge funds have been happily selling the US dollar and buying commodities for some time, creating the illusion that a strong economic rebound is underway.
An insurrection in the US capital, the formal election of the next President interrupted, and 5 people (including a law enforcement officer) dying in armed clashes. But as happens in financial bubbles, the markets sailed on untroubled.
Investors have been spoilt in recent years by the absence of risk. 2020 confirmed the ‘risk off’ mode as central banks ramped up their support. But will Wall Street continue in party mood, despite the growing problems on Main Street?
“Fundamental reality will start to dawn, as it always does, in the end”
“The rationale behind today’s euphoria seems based more on illusion than reality”
” Investors expect $trns more stimulus from Janet Yellen & Jay Powell”
“Everyone hopes that the new vaccines will prove effective. But we doubt there will be a quick return to ‘business as usual’.