Why we should be very nervous about corporate bonds
‘Before the fiddlers have fled, before they ask us to pay for the bill and while we still have the chance….’
This might be week the proverbial chickens have more need than ever of somewhere to recover from the last 9 years of frothy market madness. Take a look at the signs and signals – the Nikkei taking a 1000 point spanking last week, the US stock market looking wobbly on the lack of any real prospect of tax reform (my stock chartists have picked though the graphs, and see sell signals everywhere), articles saying Europe is poised on the edge of an economic boom-time (which, by the laws of financial common sense means its about the tumble back into recession…)
And then there is the UK – where sterling is in flight on rumours of a no confidence motion in Theresa May.. FFS.. Does the fact a confidence vote might be on the cards actually mean there are still people who have any confidence in her? I though we all understood how this plays out? I though we all agreed she is absolutely the worst possible leader of the conservatives and worst ever choice for prime minster, with the notable exception of any other elected conservative MPs?
Very interesting research note from a US investment banks says there is a 40% likelihood of a Labour Corbyn government by 2022. The risks of an election are elevated by the party spilt/civil war on Brexit, but also on May fundamentally misreading the leftwards shift in UK electoral attitudes – the Tories need a socially liberal leader to win an election. (I’ve got the phone number of the other Milliband brother if they are interested.)
This post was published at Zero Hedge on Nov 13, 2017.