"There seems to be a bit more hope on a fiscal program breakthrough before the elections, and hopes for a better-than-consensus-based earnings season to start tomorrow"
Several EU countries to experience a GDP contraction in 4Q especially those who already faced a contraction in the services sector in September, such as France and Spain.
America is at a crossroads with revolution on our doorstep. On one side are the Patriots; those who seek to preserve, protect, and defend the Constitution. On the other side are Marxist insurrectionists; those who believe that America is evil and the cause of so many problems in world.
"Some emerging information could quickly turn into trends on two key US policy debates. This would give investors some unexpected, and underpriced, clarity." - Morgan Stanley
This dynamic will persist, until there are consequences. Which will first be felt in the markets, then reverberate through the economy, and circle back to our political parties. And when such dynamics reverse, they do so fast, ferociously.
"..we are going to spend a boatload of money. They are going to spend it a little differently and on different priorities, but they are going to spend a boatload of money. They are politicians, and they can’t help it..."
When a central bank feels compelled to tighten monetary policy to stabilize a currency and tame inflation (particularly in instances when weak economic activity instead necessitates policy accommodation), it is often a last resort measure.
"We are likely to see some downward pressure in equity markets in Q4 2021, i.e., in a year’s time. Longer term, we see little impact from a prospective capital gains tax rate increase on risk taking and investors’ attitude toward equities as an asset class."
