MBCC TH 6th April'23 - "Did something change in the markets yesterday - bad news is trading like BAD news? Watch out, macro models never lie!"

Yesterday something interesting happened, the market finally traded DOWN on bad news as opposed to “let’s rally because the Fed will cut” hyped up logic. (remember cuts are not necessarily good). After $5 trillion in massive ramp up in balance sheet, today at $9 trillion, and national debt greater than $30 trillion with the fastest rate hiking campaign in the history of the Fed, do we really expect it will just slide over without a hiccup?

And NO, US regional banks are just a sideshow, a little anti-pasti…the primi and the secondi are yet to come…