“Today’s most important question is whether the inexorable trend toward zero is good or bad for stocks,” explained Lithium, hands free on Highway One. “The more we have considered this simple question, the better we’ve become at articulating a simple answer.” Low rates are quite obviously supportive for stocks, at least in America. Where the S&P 500 now trades at all-time highs, with bond yields at historic lows.
Hope all goes well… Dusted off an anecdote about unconventional policies from Feb 2015 (see below). Happy Fourth. See you next Sunday with full weekend notes. Week-in-Review (stats expressed in YoY terms): Mon: Renminbi hits new lows, Israel/Turkey restore full diplomatic relations, EU M3 +0.3 to +4.9%, Spain’s People’s Party (Rajoy) wins 33% of votes, Italy wage growth record lows, BIS warns of “risky trinity” of hi
Week-in-Review (stats expressed in YoY terms): Mon: Renminbi hits new lows, Israel/Turkey restore full diplomatic relations, EU M3 +0.3 to +4.9%, Spain’s People’s Party (Rajoy) wins 33% of votes, Italy wage growth record lows, BIS warns of “risky trinity” of high debt-low productivity-maxed out monetary policy, Moody’s cut’s UK outlook to negative, Mexico retail sales +10.6%, Brazil current account positive (2nd time