(Excerpted from this morning's Hedgeye conference call)
So, last week we had better numbers on jobless claims and the employment report. That’s what’s really causing consternation and constipation in global markets now. It’s that we’re too right on #Growth Accelerating here in the U.S.
If you disagree with that, go ahead and take a look at the chart below of 10-year Treasury yields. This thing is just ripping right now. It's up 55 basis points since the beginning of May.
As we’ve said all along, one of the big risks is that we are right too fast. It’s one thing to be right on growth, it’s another thing altogether to be right too fast. You have to stay aware of the fact that we have a Central Planner still lurking in the weeds. He doesn’t fundamentally believe that the bond market is going to do exactly what it’s doing right now.
Look, you cannot have a Central Planner promise that he will smooth economic gravity and the market expectations embedded therein. You can’t have that in Japan, you can’t have it here in the U.S., and you can’t have it in Uzbekistan. You can’t have it.
Have we forgotten? Free markets exist for a reason.
