Expectations

Stocks Surge On Expectations Dems Will Unleash Imminent Stimulus Tsunami

After a brief slump overnight, stocks are surging, lead by reflation-friendly small caps which have hit another record, although with the Dow Jones now also at all time highs even the duration-sensitive Nasdaq is in the green. While there is no catalyst to explain the reversal, one argument making the trading desk rounds is the…

Breakevens Soar To 2-Year High As Inflation Expectations Spike, Real Rates Crater

The breatheless rally in the 10Y Breakeven rate since the March lockdown lows has continued, and on Tuesday morning it hit a high of 2.03%, the highest level since December 2018. This even as real rates – which are determined by TIPS – have cratered to -1.09%, the lowest level this century. Validating expectations for…

The Great Reset, Part I: Reduced Expectations And Bio-Techno-Feudalism

Authored by Michael Rectenwald via The Mises Institute, The Great Reset is on everyone’s mind, whether everyone knows it or not. It is presaged by the measures undertaken by states across the world in response to the covid-19 crisis. (I mean by “crisis” not the so-called pandemic itself, but the responses to a novel virus…

Inflation Expectations Solidly On The Rise

Authored by Bruce Wilds via Advancing Time blog, Inflation expectations appear to be solidly on the rise and that spells big problems for the financial system. For years the central banks across the world have claimed deflation has driven or allowed their QE policies to remain. This is central to their ability to stimulate. The…

What Is the Great Reset? Part I: Reduced Expectations and Bio-techno-feudalism

By Michael Rectenwald The Great Reset is on everyone’s mind, whether everyone knows it or not. It is presaged by the measures undertaken by states across the world in response to the covid-19 crisis. (I mean by “crisis” not the so-called pandemic itself, but the responses to a novel virus called SARS-2 and the impact…