Bloomberg Tries To Make Sense Of The Market In Hundreds Of Pretty Charts, Fails
From Bloomberg's Michael Rosenberg: "U.S. bond yields are presently priced for an anemic economic recovery,
consistent with U.S. nominal GDP growth averaging around 3% for the
next two years, which is nowhere near the 5% projected by
private-sector economists and the FOMC. Something has to give here.
Either forecasters will need to revise their forecasts lower, or U.S.
bond yields are at risk of moving sharply higher. All of this suggests that greater caution on the part of investors is
warranted. Indeed, in a world where market expectations are not firmly
anchored and where the economic outlook is “unusually uncertain”, a
defensive posture appears to be the prudent course from here on." In other bizarro words, buy stocks. Below is July's Financial Conditions Watch in which yet another person tries to make sense of what is now a completely irrational and busted market. (and yes, the pageview flipping presentations that some of our competitors will make out of this document will be simply mindboggling)