Puerto Rico

Goldman Sachs On What Happens Next - Recession, War, Or Goldilocks

After several months of low volatility across assets since mid-2016, particularly in equities, markets were more volatile last week owing to fears of central bank tightening. Volatility picked up first in FX and rates, and then spilled over to equities. However, as Goldman notes, this might not be the end of the low vol regime yet.

Frontrunning: July 3

  • Health Bill Faces Resistance Among GOP Governors (WSJ)
  • Saudi Arabia, allies give Qatar two more days to accept demands (Reuters)
  • Qatar Responds to Saudi Bloc Demands as Trump Works Phones (BBG)
  • Trump says he will speak with German, French officials on Monday (Reuters)

Are Illinois & Puerto Rico Our Future?

The days of interstate highway systems and moon shots seem to be behind us. Are Puerto Rico and Illinois the harbingers of what is to come?

Bill Gross: "All Markets Are Increasingly At Risk"

"You have the potential for low asset returns in which the now successful strategy of “making money with money” is seriously threatened. How soon this takes place is of course the investor’s dilemma, and the policymakers’ conundrum. But don’t be mesmerized by the blue skies created by central bank QE and near perpetually low interest rates. All markets are increasingly at risk."