So the market is gearing up for large scale stimulus and is taking steroids by the hour.
The banking problems in Italy have been temporarily forgotten by a EZ market crying for any good news and now US markets might start celebrating the good jobs report as being evidence that the FED won't raise rates this year, because of Japanese stimulus.
Safe have assets (bonds) yields are coming off and everywhere are confused investors not knowing what to do or where to turn. It won't take long before POG takes a hit thus muddying the waters further. Governments and CB are prepared to stimulate at level to keep markets poised: the reason is they don't know of anything else to do. They have lost the plot.
Our RBA might/will probably join the stimulus rat race as soon as next month.
NIRP globally, CB QE and nervous investors has stretched the POB to the point where valuations are just plain lunacy.
This looks like a strong market if you squinted and turned your head sideways at the markets in general but the underlying theme is one of weakness in depth, quality and confidence.
It's all beginning to look a little too crazy. This is probably not the end of the troubles but the start. Let the insanity begin.
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The absurdity of the market strength
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