"I had no knowledge of the observation of two former colleagues. It undoubtedly disturbed Credit Suisse and caused anxiety and hurt. I regret that this happened and it should never have taken place.
...California lost 654,100 jobs to China from 2001, when China joined the World Trade Organization, to 2018... almost twice as much as the 334,800 jobs Texas lost...
...as long as the Fed is supporting asset prices, the deviation between fundamentals and fantasy doesn’t matter... investors are paying more today than at any point in history for each $1 of profit, which history says won't end well.
In pondering this divergence, it’s worth highlighting that there is no asymmetry of information related to the most significant risk factor thus far in 2020 (i.e. the coronavirus).
In a world where the global central bankers treat every mini-crisis as an excuse to print money, liquidity will eventually ignite in very strange places; EV automobile frauds, fake meats, government regulated celery and fake currencies.
"Because of all the above four reasons we prefer to tactically adopt a less bullish or less pro cyclical stance by cutting our equity OW from 7% to 5%"
Central banks may have entered the state of denial, doesn’t mean investors have to. The economic impact of the coronavirus is real, but sentiment is managed with new highs in equity prices. For now...
