2023-06-23 Markets
A turbulent week for equities and a relaxing one for bonds. Strange then that all the fuss was centered on inflationary news and how these would impact upcoming monetary policies. Stranger yet because while the debate rages on semantics – permanent vs temporary inflation, – medium-term inflationary expectations, in my opinion the single most important factor in deciding the battle on semantics, have moved very little since 2019.
Periodically, almost coinciding with the Olympic calendar (summer or winter, it does not matter), the eternal question of the dominance of the dollar and its upcoming demise grabs the attention of the general investing public. Many, but not all, experts have used the occasion to opine on the possible direction of the US$. The above chart, courtesy of Morgan Stanley Research, should be useful to make traders using this ‘signal’ a little nervous.
Periodically, almost coinciding with the Olympic calendar (summer or winter, it does not matter), the eternal question of the dominance of the dollar and its upcoming demise grabs the attention of the general investing public. Many, but not all, experts have used the occasion to opine on the possible direction of the US$. The above chart, courtesy of Morgan Stanley Research, should be useful to make traders using this ‘signal’ a little nervous.
