Mind the gap.
Present situation had its largest decline ever, but future expectations actually improved.
Long-term confidence hasn't cracked yet.
Barrons big money poll looks the same:
Only 4% of investors are bearish for 2021.
The "In Fed We Trust" mentality remains strong. pic.twitter.com/gGJdLeo3cc
— Otavio (Tavi) Costa (@TaviCosta) April 28, 2020
Bad news for the Fed’s Jackson Hole conference this year. pic.twitter.com/thVu7i3wjS
— Michael S. Derby (@michaelsderby) April 28, 2020
Supercharged.
Fed’s ownership of overall TIPs just surged to record levels.
50% of the recent stimulus was used to suppress LT rates.
Then add:
-Monetary base expanding
-Deficits skyrocketing
-Commodities/equity at 50-yr lowsIt’s an explosive mix for precious metals. pic.twitter.com/ifZU55aChB
— Otavio (Tavi) Costa (@TaviCosta) April 28, 2020
Bank of America Asset Management chart of combined global central bank balance sheets vs MSCI world index
'09-'19 Correlation = .95⚠️
H/T @themarketear pic.twitter.com/TOekHe2ehb
— M/I_Investments (@MI_Investments) April 29, 2020
t.co/F31PAoV5Ym pic.twitter.com/0xbLape3sL
— M/I_Investments (@MI_Investments) April 29, 2020
A bargain, at $8 trillion in global central-bank support. t.co/7n5NCVput9
— Carl Quintanilla (@carlquintanilla) April 29, 2020