Our quarterly macro themes form the bedrock of our Macro team's investment conclusions. One of our most recent macro themes is the crashing central planning #BeliefSystem, in which investors lose faith in the policies of central banking bureaucrats.
The notion that central bankers are increasingly pushing on a string is being progressively priced into global financial markets...
... With one lone holdout: U.S. equities.
While we admire the blind faith of domestic stock market operators in Yellen’s ability to keep “the game” going...
... We are keen to cite specific risks that marginally dovish policy in the U.S. will fail to overcome the depths of the domestic economic, credit and corporate profit cycles.
The #BeliefSystem breakdown is already happening in Europe and Japan, with respective equity markets in crash mode and currencies strengthening despite easy money policies.
It's just a matter of time before investors loose faith in Yellen & Co. too.