Markets in 3 takeaways:
1/ The cat that kept frenziedly bouncing throughout the summer was brought on Friday afternoon in a desperate condition at #JacksonHole County Hospital where doctor #Powell declared it dead on arrival. In other words, (animal) spirits that had been haunting the marketplace over the course of the last three Supermoons are now back to where they currently belong i.e. six feet under...But please do not worry for them: they will be back! As soon as they smell fresh blood - understand freshly printed money - again, because is not it what they always do, creeping up in droves at the end of the...night?
2/ From a less allegorical perspective, the #monetary and #financial message from the Jackson Hole Symposium is quite clear and has been perfectly encapsulated by Tyler Durden from ZeroHedge: " the sudden realization among Wall Street's best and brightest that there is no Powell Pivot and never was, sparked mayhem across markets. Stocks were (then) clubbed like a baby seal..."
3/ From a more down to earth (sic) market perspective, after moons of stubborn denial, herds of still bullish investors now have no other choice than accepting the fact that #US #rates, short AND long importantly, will keep trending #upwards AS LONG AS IT TAKES to send inflation back to Hell, whatever "pain" it may inflict upon the economy. Concretely, investors will have to stomach the ghoulish concept that US yields will henceforth trend towards the 5% handle (across the whole curve then again) which will exert considerable downward #pressure on #risk #assets in general and #lowyielding ones in particular in the next few months. In other words, bears are back in charge and they are likely to be particularly nervous and hungry after weeks of dearth...
Stay tuned!
#AiRLAB #cutthewrap #finance #marketstrategy #markets #economy #investment #aheadofthecurve #thinkingoutsidethebox #finetank #thinktank #staytuned
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