Loading ...I fear the Donald has bought in to the Rig, as he often boasts about how much the SM is up, he did it during his speech last night I gather.
It also makes life easy, as look how the mkt has celebrated his speech, all is peachy perfect…
But the SM is now becoming ridiculous to anyone even half sane….rates are rising in what looks like a 5th wave, if that is confirmed over the next few months, then rates have bottomed and the 30 plus year bull mkt is dead.
Today the story is stronger rates are bullish SM because it shows how strong the economy is, but that lunacy won’t wash for very long…Rates are rising because he has to borrow big time, he mentioned $ 1 trillion, but that is just new spending, he will have to borrow way more to pay the coupons on existing debt..
The only short term way to cap rates is QE, ie printing….longer term that doesn’t wash either….rising rates along with compound interest is an SM and scum killer.