We can rebuild every structure in America! We can offer a nice little stipend to those unwilling to work! Best of all, we can replace fossil fuel- hoovering cars and airplanes with a network of high speed trains that will get anyone anywhere they want to go in a jiffy. What could possibly go wrong?

Fed-Xi at the Bat

Nobody should delude themselves: this whole throw down with China is a major hassle, and the mood could deteriorate to new lows before anything of substance is resolved. But the only real takeaway that matters is that the elevated risk premium that has plagued the markets for so many weeks should experience substantial gravitational pull – and this should improve both performance prospects and associated investor dispositions through at least the end of the year.