Category Blain’s Morning Porridge

Boris’ Economics Plan scores an E-

Boris whipped the Tory faithful into a frenzy with his “wizard” economic plans, but it was empty, hollow and doomed bluster full of soundbites and repeating policy mistakes like austerity and higher taxes. It’s time for Government to get radical and retro-build the economy from top to bottom – all of which is imminently possible if they learn the lessons of the pandemic.

What would a Multi-Sigma Bond Slide do to Markets?

The risks of Central Bank policy mistakes are escalating. Fixed Income markets are wising up to the potential of long-term stagflation/inflation. A bond correction will crush stock markets if/when real interest rates turn positive. Central Bankers will need to decide: intervene to save markets – continuing the current distortions, or let loose the dogs of market meltdown. Anyone for the last few choc-ices?

The Threat Board is Looking Busy

Markets are never as bad as you fear, but never as good as you hope. The Threat Board has seldom looked so complex: we can try to predict outcomes, but its notoriously difficult. The list of potential ignition points seems to be expanding exponentially: Energy Prices, Oil, Inflation, Stagflation, Supply Chains, Recession, China, Politics, Consumer Sentiment, Business Confidence, Property Markets, Liquidity, Bond Yields, Stock Prices.. you name it and someone is worrying about it.