You Said it this morning, economic indicators are still performing in US despite the IR rise through the inflation metric. Sure that is a good thing as economic conditions flip back to normal economic theory behaviour?
If inflation keeps going up subject to no stagflation, the brute IR tool will be used frequently and money from overseas whether US and/or Foreign will flock back to on a carry trade advantage. I would imagine the spread of IR differentials between US and Japan would expand with the latter unable to raise any IR AT ALL!
Ditto EUR and especially AUD that is under the hostage of the property valuation after the FOMO explosion of speculators. As of yesterday, Syd property rentals are falling which I "read" as property investors having to cut rents to get someone to live. This I suspect is a leading indicator for the property down turn but I don't keenly follow this sector as I try to avoid banks currently. In time, I don't know when that is, banks will come back into fashion!
