h/t @dlacalle_IA
Everyone keeps blaming the inexistent trade wars for widespread market corrections instead of the obvious: Monetary stimulus saturation, excessive valuations and Fed balance sheet reduction. $14bn this month
Number of countries suffering a drastic reversal in fund flows rises to 12 in 2018. A self-inflicted weakness after years of increasing imbalances believing in an eternal weak dollar and perennial low rates.
Yield curve inversion matters because the US has a parallel banking system of roughly equal size ($18 trillion) called the shadow banking system that can’t function properly with inverted yield curves
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