So long as there continues to be big holes in the bucket in the form of unfunded deficits for governments and insolvent banks holding their bonds, liquidity pumps will continue to bring short-lived rallies with no lasting benefit. Eventually I expect that Euro zone debts will be restructured and written down along with massive cuts in government spending. At that point cash will be able to build into lasting strength on balance sheets again. At last the solvency crisis will be stemmed and the long road back to economic strength and a durable expansion in the stock market can begin. If you can’t see the clip here is the link.
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Cory’s Chart Corner
Many will focus the blame of market drawdowns on the tariffs and ignore the fact the SP500 (only a few weeks ago) was trading at 4 std devs above its historical mean…valuation also matters.
The Kobeissi Letter @KobeissiLetterBREAKING: The European Union is preparing further counter measures against newly announced US tariffs of 20%, per CNBC.
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Mr. Rosenberg is one of the few people in the financials I respect and listen to. An excellent short piece, thank you very much. JW, Vancouver