Market focus this week turned to troubled healthcare legislation, with the GOP Friday pulling the vote on the repeal of Obamacare. This “Republican Catastrophe” (Drudge ran with a Hindenburg photo) provided a timely reminder that Grand Old Party control over the presidency and both houses of congress doesn’t make it any easier to come to a consensus for governing a deeply-divided country.
On Wednesday the US central bank sent a clear message to markets that it is not in a hurry to tighten monetary policy.”
New Fed Q4 Z.1 Credit and flow data was out this week. For the first time since 2007, annual Total Non-Financial Debt (NFD) growth exceeded $2.0 TN – a bogey I’ve used as a rough estimate of sufficient new Credit to fuel self-reinforcing reflation.
How about a cursory look at recent economic data
Market Dynamics continue to frustrate many hedge fund strategies. At this point, Europe remains at the epicenter of The “Risk On”/“Risk Off” Faceoff.
Like so many things in The World of Finance, we’re all numb to Chinese Credit data:
Behind every consequential Bubble is an inflation in underlying Credit.
It’s not the first time that a non-farm payrolls rally wiped away inklings of market anxiety. Coming early in the month – and on Fridays – the jobs report typically makes for interesting trading dynamics.
Now that was one eventful week.
It’s been only two weeks, yet 2017 is off to an interesting start. It’s certainly quite a contrast to last year’s “worst market start in decades.”