What’s going on in the world…
Market opens flattish ahead of a really important Fed Day. It comes in the wake of a powerful rally yesterday, triggered by an aggressive call of stimulus by the ECB and a tweet from President Trump teeing up a meeting with President Xi next week. The whipsaw price action continues. June is a mirror image of May. 2019 has been a mirror image of 2018. Growth is slowing. Trade tensions show no signs of letting up. Tensions between Iran and the US are getting worse. But apparently, all that matters is cheap money and a Fed backstop. Politics are playing a role. Mario Draghi has an agenda. President Trump has an agenda. Jerome Powell is feeling tremendous pressure to cut. Natural economic cycles are not being allowed to run their course. The danger is small setbacks not allowed to occur could lead to crisis. Small things lead to big things. Boris Johnson continues to work his way towards becoming British Prime Minister. Facebook is getting a lot of pushback on its plans for a cryptocurrency. Interest rates are higher, the Dollar is lower, as is Gold and Oil. Hang on for the ride.
Have a great morning,
Mike Frazier
