Opinion

Quick Takes

Heavy news filled week this week. It’s month end and a new month beginning, we have a Fed meeting,  and plenty ongoing news on tax cuts, but also activity on the political front.


China Bond Selloff Spreads to Stocks as Deleveraging Risks Mount

QT: Lots of concern there with the insane amount of debt that has been building up. Overnight their yields are jumping too and the bond market all of a sudden is up in arms. Stocks are a bit under pressure too and as someone who is concerned about the ultimate impact of debt I’m watching keenly for any developments on this front.

US consumer spending clocks biggest monthly gain since 2009

U.S. Consumer Spending Rises Most Since 2009 on Car Buying

QT: Best to look at the details. It sounds good in print, but a look underneath shows that this spending involved debt spending as saving rates are sinking.

Paul Manafort has been indicted on 12 counts.

QT: The link to the indictment above outlines the specific charges & evidence on wire transfers and money laundering. None of it is fake news and it suggest deep financials ties and motives the true nature of which will take months to be revealed. For anyone presuming nothing is there these charges should lay these thoughts to rest. Manafort was not only Trump’s campaign chairman, but also instrumental in getting VP Pence selected. This is not the end of the process, it is the beginning and hence the news flow will be heavy for weeks to come.

Tax cuts and other domestic agendas may be impacted.

History may not repeat, but occasionally it rhymes:

Why stock-market bulls should be wary of rising tide of earnings shenanigans

QT: As I outlined this weekend in “It’s All About The Magic” this rally is getting thinner and investors keep piling into ever more expensive assets. As ETFs keep getting a significant share of the inflows investors often don’t even know, or perhaps don’t even care it seems, what they actually are paying for.


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