The US Stock Market hit a record high on Friday. Yet around the globe the disconnect between euphoric markets and unhappy voters has never been so wide. Markets are still distorted on low-rate expectations, while populism and inequality are rising.
Boeing is a lesson in broken capitalism. It’s latest safety catastrophe highlights multiple management failures. Things are set to get worse as the Global Economy realigns and the US turns isolationist. Who will eventually dominate air travel?
Markets expect a swift series of interest rates cuts will drive prices higher. They are fooling themselves. Inflation remains sticky. Central banks have a debt crisis to address while weaning the economy off the distortions of low-rate addiction. The scope for cuts is limited. Time to focus on what “higher for longer” real-rates and mean for market fundamentals.
Blain’s Morning Porridge, 17th January 2024: - Davos: Deaf, Dumb [...]
The well-respected head of the UK’s Debt Management Office, Sir Robert Stheeman, retires this year. His successor will need tact, diplomacy and technical experience to maintain the DMO’s reputation for handling the Gilt Market. Continuity is paramount, and one candidate stands out for the role.
Welcome to the new look Morning Porridge Website. Each morning [...]
Bitcoin has zero fundamental utility. It is cult that was designed and loaded to make its’ “high priests” rich. To understand how it will trade, forget common sense – focus on what it is, who the players are and what is likely to motivate and influence the price. On that basis Buttcon may be a cynical buy – but be prepared to exit early.
The UK’s Post Office Scandal has exploded and dominates the headlines. It’s about flawed Corporate Governance – and demands punishment. The implications for markets are huge – the success of capitalism depends of governance and justice being seen to be done.
Let the games begin. 2024 is going to be… interesting. Whether its consumer debt, corporate default rates, banking worries or sovereign bonds there is plenty to be pessimistic about. The optimists think it’s going to be Goldilocks – what do they know I don’t?
Is it just me that finds Christmas and the Holidays to be overly stressy? They will be over too quick, and we’ll all be back as confused as ever. Here are some thoughts and predictions for 2024. The one thing I guarantee: The World is Changing.
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