Blain’s Morning Porridge – September 18th 2019
“There is no equilibrium, we invest into unstable constantly changing markets. ”
Why so Calm?
Even as the Fed meeting pondered raising rates by a smidge, it had to intervene to pump money into the short-term US financial system for the first time since the 2008 crisis. That’s a clear sign of financial dislocation – but markets seem utterly unconcerned. (The wires all quote issues such as tax payments and an imbalance between new funding and low redemptions to explain the sudden lack of cash, but none of my money market chums are convinced. They fear something else, a big No-See-Em is underway.)
The last crisis started in money markets. Add that to the ongoing WTF-happened questions about the Saudi bombings, and there seems to be a curious sense of false calm in markets. No vol, no concern, and gold hardly moving. I can’t help but think of ducks; serenely floating upstream while their legs are furiously paddling below the surface. Something is happening, and we don’t know what it is..
Since I don’t know either, today is the day to take a pop at the Green Puritan movement:
There is a great comment from Bill Gates in the FT – Fossil fuel divestment has “zero” climate impact, says Bill Gates. Worth a read, and maybe get yourself thinking about what damage ESG/Green group-think nonsense is doing? Its distorting the global economy and voiding perfectly sane investment strategies. As regular readers will know, I absolutely believe Climate Change is The Big Threat – but I’m more and more convinced that much of the ESG / Green Investment bandwagon is utter bollchocks!
…click on the above link to read the rest of the article…
