Blain: "We're Nearing The Moment When Everyone Tries To Exit The Bond Market At The Same Time - It Will Be 2007 Again" | WHAT REALLY HAPPENED


Blain: "We're Nearing The Moment When Everyone Tries To Exit The Bond Market At The Same Time - It Will Be 2007 Again"

These are thin and dangerous markets… We are marking time ahead of Friday’s G20 meeting. Then it will be summer. By then we will be anxious about Europe, Iran or whatever the next thing is. Traders have too much to worry about and too little to do. The geopolitical strains, fretting what Trump might tweet next (yesterday’s all-out assault on the Fed and calling it a “stubborn child” was sublime), or this week’s trade meeting at the G20 – which I expect will seriously under-deliver on market hopes. Remember – Hope is never a Strategy!

I do think we need to think a little more about the Trump effect on stability. The US ain’t doing so bad around 2.5% growth (3.1% Q1). Only an idiot would mistake a soar-away stock market with economic stability. A Dow a couple of “thousands points higher” would be massively overbought, and just a higher number to correct, and if “the Fed doesn’t know what its doing”.. well who does? Trump is noise. Get over it.

Yesterday’s lowlight wasn’t his infantile rant about the Fed – but his comments about pulling out the defence treaty with Japan. Hang on. This is a man contemplating economic war against China, and he wants to kick it off by sacking his most effective regional ally. Is it any wonder the Chinese are confused by the messages he’s sending?

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