Morgan Stanley

Frontrunning: December 8

  • U.K., EU Reach an Agreement on Brexit Divorce Terms (WSJ)
  • What's in the Brexit divorce deal? (Reuters)
  • China exports growth hits 8-month high, imports defy pollution curbs (Reuters)
  • The Bitcoin Whales: 1,000 People Who Own 40 Percent of the Market (BBG)
  • Senator’s Shaky Obamacare Deal Poses Tax Challenge (BBG)

Blow.Off.Top.

"...the prospect of tax cuts is the final carrot the free money scheme has to offer. The carrot top is here... there are no more carrots."

Frontrunning: December 1

  • Tillerson, Cohn Could Leave White House in Wave of Senior Departures (WSJ)
  • Senate grapples with tax cut plan's impact on deficit (Reuters)
  • Here’s Where the GOP Tax Plan Stands Right Now (BBG)
  • Markets ignore best European factory data in 17 years (Reuters)
  • Tax Debate Plays Out in TV Ads Targeting Key States Across U.S. (BBG)

Dow Hits Record 24,000, Europe Jumps As Euphoria Returns After Tech Rout

Despite a Wednesday dive in high-flying U.S. tech stocks on worries their boom may have peaked following a MS downgrade, which presured Asian stocks leading to a slide in Hong Kong and South Korean share, on Thursday morning the dip buyers have emerged and both European stocks and US equity futures are once again solidly in the green as yesterday's tech selloff is quickly forgotten.

Tax Reform Rotation

"Although I agree the tax cuts are far from being priced in, what if this change causes a massive rotation out of growth and into value/financial/stocks-that-benefit-most from tax cuts, and in doing so, causes volatility to rise? If volatility rises, then for a whole host of different reasons, market participants will be forced to de-lever their stock portfolios."