Santa vs. Everybody (dyor)

“Normally,” we’d expect Santa’s sleigh to be in full flight. Perhaps he has already done his rounds? Very unclear, very choppy, day to day, let’s take 2 steps back.

A. Fear

I have a question: if everyone is this fearful, how is the market only this amount lower?

B. King Dollar

The world doesn’t like Europe, the USD is being used as a safe haven, very very clear.

C. Ten-Year Note

If CPI / PPI are running hot (true, not transitory), why are interest rates not much higher here? Uninteresting to most, but should be of note here:

  • Inflation should mean interest rates higher

  • If GDP growth followed interest rates should be higher

  • BUT, if this doesn’t happen, given the prior bullet points, one might wanna pump the brakes on some underlying assumption.

Dr. Spock ain’t wrong…
Big markets might be saying that fear is warranted. Rhetorically, if that is the case, why aren’t markets way lower than this?

Important: this combination likely resolves soon after Michigan beats Georgia.