Liquidity collapsed to multi-year lows in December.
While brokers believe that dovish messages on rates from central banks will solve the issue, I believe they miss a bigger picture: Banks are likely to significantly reduce credit growth due to lower demand, not lack of supply pic.twitter.com/GjNPdgEqMV
— Daniel Lacalle (@dlacalle_IA) January 23, 2019
These earnings calls are bearish. Typical Cyclical rolling over.
The “beats” are all bottom line tax cut driven. Top lines all weak.
Inventories building. People hoping for “better back half”.
Fundamentals getting weaker.
Fade the Bounce.
— Paranoid Bull (@paranoidbull) January 23, 2019
Top Four Headlines Of The Day:
*China grew at slowest pace in 28 years in 2018
*Huawei's CFO arrest stokes U.S.-China trade tension
*U.S. existing home sales fall to three-year low in December
*U.S. rebuffs offer from China on initial trade talks -FT
— Alastair Williamson (@StockBoardAsset) January 23, 2019
To little fanfare yesterday, the Philly Fed released its nonmanufacturing index for January and it fell through the trap door. Look at the charts — have the recession label all over them. As if the housing report wasn't bad enough! pic.twitter.com/0L1M5RDHFW
— David Rosenberg (@EconguyRosie) January 23, 2019
"Global weakness, tightening financial conditions, & quiescent inflation should lead the FOMC to pause their hiking cycle this year. The timing of rate increases will depend crucially on incoming data, but for now we expect the Fed to @ least skip Q1 hike," noted Credit Suisse.
— Alastair Williamson (@StockBoardAsset) January 24, 2019
Consumer sentiment has had its biggest drop since 2015 in January. t.co/VMTsdU3KiH
— Axios (@axios) January 23, 2019
— Jesse Felder (@jessefelder) January 23, 2019
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