Great article. He puts it in Economics language well and not too difficult for someone like me to understand.
Yes, I'm bullish equities in the TINA hence we see a decade of one sided rally in this asset class. Comparing it to gold price, it is leaving the safety dead since the GFC.
'Financial repression' is a good term to describe QE, Op Twist and Repo. This is interesting as banks are pumping up valuation using share buy back again.
That bond yield falling this time with the $120B monthly Feds purchase is either the continuing manipulation to keep IR low and/or big funds sidelined on the equity TINA because it is over valued or something more sinister. The XJO selling off today is no surprise off the US sell off on Friday.
Our XGD like GP is literally a coin flip on the short term swing but unfortunately from where it fell in August 2020, the odds favor a dead cat bounce rather than a recovery. The only flight to safety today is healthcare while gold stocks are getting a ram treatment!
