Key Takeaways: Don’t be fooled by today’s price action in the DOW (which KM shorted into the close today). To the extent the ECB and BoJ incrementally ease monetary policy as our models suggests they will at some point over the next 2-3 months, the ongoing monetary policy divergence across G3 economies is likely continue perpetuating a severe tightening of credit conditions globally via a stronger U.S. dollar. Moreover, that is likely to perpetuate a deepening of the ongoing global earnings and industrial recessions.
Today we put together a ~20min video and a 27-slide presentation detailing how we arrive at the aforementioned conclusions.
CLICK HERE to download the associated PDF, which reads as a standalone research note.
Feel free to call or email us with questions.
Enjoy your respective evenings,