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.
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The notion that central bankers are increasingly pushing on a string is being progressively priced into global financial markets...
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... With one lone holdout: U.S. equities.
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While we admire the blind faith of domestic stock market operators in Yellen’s ability to keep “the game” going...
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... 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.
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The #BeliefSystem breakdown is already happening in Europe and Japan, with respective equity markets in crash mode and currencies strengthening despite easy money policies.
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It's just a matter of time before investors loose faith in Yellen & Co. too.
