6 Picture-Perfect Cartoons Capture Breakdown In Central Planning #BeliefSystem

05/24/16 01:50PM EDT

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.

1.

The notion that central bankers are increasingly pushing on a string is being progressively priced into global financial markets...

6 Picture-Perfect Cartoons Capture Breakdown In Central Planning #BeliefSystem - Central bankers in corner cartoon 04.20.2016 

2.

... With one lone holdout: U.S. equities.

6 Picture-Perfect Cartoons Capture Breakdown In Central Planning #BeliefSystem - Easy money cartoon 04.28.2016

3.

While we admire the blind faith of domestic stock market operators in Yellen’s ability to keep “the game” going...

6 Picture-Perfect Cartoons Capture Breakdown In Central Planning #BeliefSystem - Yellen cartoon 03.31.2016 

4.

... 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.

6 Picture-Perfect Cartoons Capture Breakdown In Central Planning #BeliefSystem - hour glass cartoon

5.

The #BeliefSystem breakdown is already happening in Europe and Japan, with respective equity markets in crash mode and currencies strengthening despite easy money policies. 

6 Picture-Perfect Cartoons Capture Breakdown In Central Planning #BeliefSystem - Draghi Peter Pan cartoon 04.13.2016

6.

It's just a matter of time before investors loose faith in Yellen & Co. too.

6 Picture-Perfect Cartoons Capture Breakdown In Central Planning #BeliefSystem - central bank cartoon 04.22.2016

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