This is just going to be a quick technical update. We haven’t truly seen anything game changing take place over the last two weeks.
We continue to hear chatter of a China/US trade resolution, but we doubt this pig will be dealt with any time soon. This chart to the left is certainly cannon fodder for #POTUS to continue to pound the pavement for a much better US trade deal.
The Commerce Department released their latest numbers last Thursday which showed that Imports exceeded Exports by a new record of $914 billion in 2018. (WSJ)
Even we thought that at first and actually when the FED hinted at this, the markets did rise, both equities and bonds alike. However now and given this new bearish global economic outlook, we feel that many and we mean many are caught wrong footed here and offsides. How this transpires in actuality will be uncovered as we move forward in time, but for us, well, we will continue to probe inter market relationships for any clues of real stress.
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