Though a lot of hot money was poured into the trade in the last quarter of 2020, there is still much reluctance on the part of economists – always prone to a spot of Under-consumption fallacy – to wholly embrace the idea that prices are beginning to rise and that the path ahead is likely to be an inflationary one. That path will inevitably not be smooth, nor its ascent uninterrupted, but it is hard to see where we slow the climb or take a different turning – or even that sufficient will exists to choose that alternative were it ever to come up on our satnav.
Tag Archives: USD
OPEN ACCESS FOR A LIMITED TIME ONLY.
It’s not just the leaves that often turn when the year begins, with gathering pace, to slip towards its chilly end. Markets often do, too.
Given this backdrop, the sell-off in the Nasdaq – in the marvelled-at ‘Growth’ stocks, in the FAANGs, and in Tesla – comes at a moment which is particularly intriguing for reasons which go far beyond whatever coup SoftBank may or may not have attempted and whether those irritating Lockdown Livermores have finally gotten their comeuppance.
[An edited version of the following appeared in Moneyweek under the title, ‘What’s unsettling the US Dollar?‘] ‘Dollar makes worst start to the year since 1985,’ screamed the headlines a few weeks ago in a classic click-bait attempt to get people to read about what they already should know by using a somewhat artificial statistic […]
The latest edition can be had here:- 17-06-05 M4 No 3 Including a look at Japanese equities, the US dollar & sterling, the latest US data round, the significance of yield curves, and misconceptions about monetary ‘velocity’. Courtesy of Cantillon Consulting
As what will be an interval greatly shortened by the Thanksgiving Day holiday dawns, traders and investors seem happy to continue where they left off on Friday, buying stocks, selling currencies, and giving bonds a fairly wide berth. A little respite would not be entirely unwelcome after a period in which we have experienced record […]