Financial Markets Newsletter

Tariff Lamentations

The mirage of a new trade regime with China has dissipated. Both sides are beating their chests in a show of strength through tariffs and a disregard for unintended consequences. A confident spirit lives within both sides as global stock markets have rebounded from the December lows giving trade negotiators a shot of courage. However, […]

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Dear 1999…

Several IPOs have been launched in the last few weeks at nosebleed valuations fueled by the euphoria over the perception that the Perma-Fed has our back. The latest IPO launched on Thursday was a cloud based video conferencing company named Zoom that was 20x oversubscribed at 48x revenue (more detail below). There is no better […]

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Liquidity Trap

The Fed has finally painted itself into a corner. After several years of pumping up its balance sheet and instituting ultra-low interest rates, the Fed’s first and only attempt to reverse this policy was thwarted by a stock market sell-off at the end of 2018. Wonder why? The chart below shows that the globe is […]

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