IIFT Daily Note with Peter Brown

Some people think it’s all over…………

Posted by:  |  Time: 7:56 am  |  Topic:
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Mr Tepper, one, if not thee leading hedge fund trader is nervous, very nervous. Why? because after years of stimulus in the US we have only minimal growth. And he feels Mario Draghi has missed the boat and anything he does now is too late. US bond yields fell below 2.5% yesterday, not exactly a good sign the market is confident of a strong recovery. Growth figures in Europe were awful, France is stagnant and Italy is shrinking.

Historic low bond yields in Europe do not reflect confidence, they are a combination of excess liquidity in the system and the belief we are not going to recover for a long period of time.

All this led to the equity sell off yesterday. Is this the start of another global depression, a continuation of the one we are experiencing in Europe or just a blip on the road to recovery? We wait and see, but if we have a down day today it could get ugly.

All this has led to dollar selling and is why the Euro bounced. It would be a brave person to try to predict today. Go with the flow is the best advice. Tech levels not worth much

Conditions choppy/ hurricane

Levels are. (not great) S&P (JUN) 1870 1860 Wall St (DFB) 16500 16400 DAX (DFB) 9700  9600 Euro 1.3750 1.3650

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