Amidst the greatest ever coordinated Central Bank intervention, which has seen equity values soar off the lows of the CIVID shock, the latest set of data from the WTO does not paint a rosy picture. The disconnect between economic activity and equity price valuations is clear to see. With President Trump touting the unstoppable upward march of his beloved stockmarket, Industrial production volumes have cratered, demonstrating the twilight-zone “investment” market in which we find ourselves.
Renowned US economist and money manager, Gary Shilling has made some chilling predictions. The man who correctly forecast the 1973-1974 AND 2007-2008 recessions, and the one we’re experiencing now, has suggested that the current economic malaise is more than likely to stretch into 2021 and beyond, with the possibility of a 1930’S type recession being a likelihood which cannot be ignored.
A fascinating chart of World Trade Volume vs the MSCI World Index shows what everyone on main street is feeling, while Wall Street continues to mark ever higher prices. A complete collapse in global trade is violently dislocated from the Fed-juiced global investment markets as ‘free-money’ floods the landscape looking for a home. Read more…
Chart of the Day
National Taxpayers Union Senior Policy Fellow Mattie Duppler breaks down the proposed Republican stimulus plan.