Fed’s Core Mission Now Includes Climate Change

It’s bad enough that central bankers are clueless about inflation. They now want their hands in another thing they do not understand and cannot control even if they did. Fed’s Core Mission Change Lael Brainard, Chair of the Fed’s Committee on Financial Stability, says Climate Change Matters for Monetary Policy and Financial Stability. So how […]

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Never Before Seen Market Complacency, As Everyone Goes Even More “All In”

Last weekend, we pointed out that according to the latest flow data as compiled by Deutsche Bank’s Parag Thatte, virtually every segment of the market – from institutional to retail investors, and systematics such as quants, risk-parity, vol-targeters, and CTAs – were essentially “all-in” stocks (if you missed it, please read “Institutions, Retail And Algos […]

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Housing Starts Surge to a 13-Year High Thanks to Massive Seasonal Adjustments

Seasonal-adjustments, coupled with an exceptionally warm December, and a surge in multi-family construction, especially in the Midwest led to a reported overall surge in housing starts. The Census Department’s New Residential Construction report has the details. Housing Starts Privately-owned housing starts in December were at a seasonally adjusted annual rate of 1,608,000. This is 16.9 […]

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Investors Face “Grave Danger” – Wait 30 Years For Nothing Or Lose 67% Now

As the market is levitated by central bank liquidity to record high after record high despite stagnant fundamentals, one asset manager is quantifying the mass hypnosis and warns investors are in “grave danger.” “Investors should keep in mind that market valuations stand nearly three times the historically run-of-the-mill valuation levels from which stocks have historically generated run-of-the-mill long-term returns,” […]

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