After a torrent of monetary easing from global central banks to make even a hard core nymphomaniac say: "Enough already!" the cries for more continue. As the WSJ reports today four sectors of the S&P 500 are higher than they were at the start of the Brexit vote. Those four--utilities, telecom, consumer staples and health care--should tell you more than you want to know.
The first thing is growth is like the honest soul Diogenes with his lantern went searching for--non-existent. The second is that silly 2% inflation target global central bankers have been chained to also remains non-existent, for now. Smart traders supposedly take the other side of a trade few want. That rules out most ordinary souls because most have been brought up in ordinary ways. Don't stand out. Fit in. Go to an Ivy League school.
After more than 20 years of deflation one might suspect that hot water bottle is getting pretty cool. We remember a well-known Treasury bond trader buying 30-year bonds years ago yielding 14-15%. He's now in that other dimension but most likely trading bonds. But back then he still had enough testosterone on board to tell everyone, including MSM mavens, what he was doing.
Nothing braggadocios. Just straight forward talk. It was about as unpopular then as the sniveling, driveling wealthy elite are now. He was in New York. The guffaws were so loud one could hear them in Puget Sound. As far as we know he never did it. But he probably years later wanted to cop a page from Nigel Farage who stood in front recently of all those stunned EU bureaucrats and told them to their faces: "You're not not laughing now!"
We suggest, and that's all anyone can really do--so hold your guffaws for another time, that's an approach you might want to take to this market. Overlook all the numbers-cranking palaver and focus on human behavior. It's like the weather. It can change without warning.
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