What a week it has been! Where does one even start? Let’s start with a headline we didn’t see: Historic Losses Occur as Wall Street Finally Realizes the Threat That the Coronavirus Poses to the Global Economy Having not watched Financial News on CNBC since about 2009, switching it on last week certainly bought back […]
As big as the win last week was for “Brexit”, as small as the “huge” Trump trade deal is, no news of the last week *Trumps* the gargantuan US Fed promise of 500BILLION to a frozen short term REPO money market over the next few weeks, just to keep the engine running and stock markets […]
Welcome to a new economic week. Last week we were forced to carefully reconsider, not just the continuance of Australian rate (down) trends, as demonstrated in the charts below but also the emergence of “the word”, inflation. What if rates were to fall to 0.50% and the cost of living went up by 5% in […]
Before we start with some commentary around the IMF downgrade to Australian GDP last week, let’s deal with something equally as meaningful to investors. In our last note, we tried to explain the US fed’s solution to a frozen short term lending market, to send fresh money, out of thin air, into said market. And […]
Confirmation over the last six months of central bank commitment to solving a debt and credit crisis with more of the same is really starting to take effect. It’s truly amazing, that with the prospect of slowing global economic growth and recession looming, Central bank buildings around the world, full of PhD’s, are nothing more than a […]
In the space of 6 weeks, the US Fed has gone from steady as she goes, 3 rate hikes to go in 2019, to considering policies so extreme that they weren’t used in the greatest financial crisis of the last 80 years. 6 weeks!! Shredding all remaining market credibility, in our irrelevant opinion. Peter Schiff […]
Nothing lifts the animal spirits of markets quite like the smell of fresh rounds of central money printing, to go with the central banks that never stopped. The US Fed’s reversal in late January, (combined with intense early January jawboning from US Treasury Secretary and President to buy all the things) was sudden, and stunned […]
Best of the festive season to all, we’re hoping it’s a safe one for you. Before we get into the content of our last note for the year, we’d like to present the following chart from the irrepressible team at visualcapitalist.com Just food for thought, leading into 2019.
The old line, “recession doesn’t kick in until after the last rate rise” certainly doesn’t look like it will apply to Australia this time round. Indigestion from too much debt makes a rate rise in Australia so remote, it would take some type of unexpected hyperinflation to trigger. The US Fed reserve’s determination to continue […]
Hell of a couple of weeks. And what is with gold going up with the USD? Haven’t seen that for a few years. Last week, probably worst for equities since Lehman Fukushima. So, after 9 years of “mission accomplished”, after almost a decade of negative and 0% interest rates in the OECD, designed only to hold the […]
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