The Five Most Important Things That Happened Today
(and what to do about them)
My Big Call for the Month.
Many traders are perplexed, confused and befuddled as to why both “RISK ON” and “RISK OFF” assets are going up at the same time, especially in the face of a burgeoning Corona Virus pandemic. Stocks, bonds, and gold never go up at the same time. The reason is very simple. The worse the plague gets the more global central banks will expand quantitative easing to blunt the effects on the economy. So, the worse it gets, the more money ends up in ALL asset classes, not just the defensive, pre-recessionary ones. Hence everything goes up. You heard it here first.
following on from the logic above calling for a melt up of all asset prices. Collapsing interest rates don’t signal an impending recession, but a hyper acceleration of technology wiping out jobs by the millions and capping any wage growth. I’m looking for 1.00% on the ten year. Money will remain free as far as the eye can see.
in January, down 1.3%, to a seasonally adjusted rate of 5.46 million units. Inventories are down to an incredible 3.1 months, near an all-time low. I guess consumers don’t want to rush out and buy a new home if they are about to die of a foreign virus.