The PPI came in a bit less than expected so celebrations all around. In recent days we’ve seen a complete reversal of the commodity trade/panic and more importantly complete and utter destruction of Asian markets.
LONDON GAS OIL HAS COLLAPSED pic.twitter.com/cfM99GtWe4
— The_Real_Fly (@The_Real_Fly) March 15, 2022
This is all very deflationary, coupled with the fact that companies are missing earnings (see coup), one could begin to make the case for rates to come down and for bonds to rise. I’m presently long TLT.
We are of course reliant upon the war in Ukraine and it doesn’t help that Russia just accused the US of helping Ukraine develop biological and nuclear weapons. Nonetheless, it would seem probable that things might slow down a bit here and stocks catch their footing if only for a few days before resuming the inevitable downward slide.
If you enjoy the content at iBankCoin, please follow us on Twitter
