Morning Lads,
Ready to get your brains blown out today?
Futures are off by 200, Nasdaq -55. It’s not a big deal, really; quit your bellyaching.
The US 2/10 spread is now just 27bps. Some analysts are predicting inversion by December, which would meld perfectly with the idea that we’re entirely fucked in 2019.
On the issue of Dr. Copper, what’s this move all about? I’ll tell you what it means: China is fucked.
The only way out at this stage in the game is for China to acquiesce and bend the knee of Emperor Trump. If not, their problems will only get worse. Might I add, consumerism in America will have to take a vacay too, at least on the low to mid-end side of things. If Chinese goods ramp up in price, then disheveled work bumbs in America will need to spend their money on other things, like booze and baseball games.
There are all sorts of things at play now, from semis to soy beans. Trade with China has been disrupted and I’m afraid this is the new normal, until someone blinks. We’ve been spoiled with cheap Chinese shit and all of that has been upended now. The halcyon days when a local manufacturer could reduce his costs by 80% is over now, thanks to Trump.
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Fly .. your thoughts on high end RE? yes volume may be up but price is going down.