Money printing or more accurately called credit creation is the driving force behind economic growth and bull markets. How do we correctly measure money creation? There are two ways real economy money is created: Contrary to popular opinion, when central banks pursue quantitative easing (QE) they don’t create real economy money, instead bank reserves are […]
Tag: quantitative tightening
Jackson Hole signaled higher rates ahead
Jackson Hole signaled higher rates ahead and investors dump stocks and question what to do next. Jay Powel was crystal clear, higher rates are coming and stocks will not be bailout out this time around. Wise market participants realize the Fed Put is dead. Another way of saying, we won’t cut rates if economic growth […]
China’s economic engine sputters
China’s economic engine sputters as the “recession imminent” theme tries to dethrone the dominant “goldilocks” narrative. What does this mean for my overall market thesis? That stock prices rise into Jackson Hole on August 27th, and then begin to slide into Halloween. Not much, the market is fixated on inflation and CPI. To recap, yesterday […]
