Global Markets Recap
A fabulous start to the week as “risk-on” is the prevailing sentiment. Last week, every hedge fund manager named Stan (Druckenmiller), Jeff (Gundlach) & David (Tepper), stepped to the mic to declare equities supremely overvalued. And then Fed chair Jay Powell went on “60 Minutes” and quieted them down. It’s a war out there, a jungle – and the Fed is winning.
It matters, too, because when stocks rise & capital markets function, companies can borrow – to rehire, retrain, pay people. #RebuildAmerica. Don’t buy into the rhetoric only the wealthy benefit from higher stock prices. If you have a job in this country at a bank, consultancy, or tech behemoth, you have no desire to see calamitous death spirals of asset valuations. Jay Powell is a pro so he won’t ask people to thank him, but I’ll do it for him.
That man’s fighting hedge fund shorts, doing a darn good job of it, & he’s doing it for you. Let cynics rant & kvetch; that’s what they’re good at. And the shorts – squeeze ’em. They wouldn’t throw you a lifeline when you’re on the other side. They’ve made their bets & Mr. Powell is sticking it to them. All is fair & love & war; there’s no crying in baseball. Tomorrow is another day, & new shorts will reload once again, and Jay will be standing there, defending the roof over your head.