If I told you a year ago that markets would soar after the U.K. would vote to leave the EU, the debt strapped Italy would vote to fire Renzi and pave the way to potentially exit the EU, and Trump would win the election on an anti China platform, you’d tell me to fuck off. Well, following yesterday’s Italian referendum and subsequent collapse of the entire Italian bank, that’s precisely what’s happening today.
Let’s draw some distinctions, shall we?
And…markets are at new highs.
Italian 10yr is ripping higher, up 13bps to 2.037%. In bizaaro world, spiking borrrowing costs for highly indebted nations is good news. Bankruptcy is so trendy.
In short, because Trump is such a friend to China, and inflation is such a threat, and the economy is doing so well, sharply higher interest rates is good for stocks. It transcends everything, even the potential collapse of Italy’s banking system and their exit from the EU.
To be clear, all that matters is global growth is somehow back with a vengeance.
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Musical chairs happening right now. Now the question is when will the music stop, Fly?
Just had to check something on my bank of Chi…oops America account and got hit in the face with a reminder that they support love. Oh wow I feel so warm and tingly now
I’d wait to sell until the market heads lower on good news. This is the opposite of that.
Let the euro banks fail. Goldman royalty has been appointed to Treasury Secretary. Jamie Dimon is going to be too busy CRUSHING IT for the next 4 years to have any time for that job. I’m sure the good banks will be there to pick up the pieces of eurotrash.
Trump summons Al Gore to Trump’s Tower. https://www.youtube.com/watch?v=vInLBBsNwHI
Watch Trump turn into the environmental President and appoint Gore to something or other. Watch Trump hire TSLA to build out solar across the country in a mega-project catapulting TSLA to 1000.
Bellisima!