"Core-goods inflation was negative and supercore (services ex-shelter) declined. That leaves Warsh with the best of both worlds: He can continue to sound hawkish without having to raise rates."
"A quick glance at financial markets would seem to indicate that everyone has taken a month off to watch the football World Cup. The DXY index is essentially at the same level as in mid-June (or late March). The S&P 500 and SOX indices are at roughly the same levels as in mid-to-late May. Long-dated bonds are essentially back to the lows of mid-May. And oil prices are back to US$85/bbl, where they stood in mid-June. Meanwhile, gold has been hovering around US$4,100/oz since mid-June. Even bitcoin, that most volatile of assets, has spent the past four weeks doing essentially nothing."
"Liquidity is a strategic asset in a more volatile world."
"When things get stretched this far, my view is you should bet against the wind a bit. I don’t think software is going out of business or that semis have found new gold. It seems extreme that chips are up on a flagpole and software’s down in the basement."
"A quick glance at financial markets would seem to indicate that everyone has taken a month off to watch the football World Cup. The DXY index is essentially at the same level as in mid-June (or late March). The S&P 500 and SOX indices are at roughly the same levels as in mid-to-late May. Long-dated bonds are essentially back to the lows of mid-May. And oil prices are back to US$85/bbl, where they stood in mid-June. Meanwhile, gold has been hovering around US$4,100/oz since mid-June. Even bitcoin, that most volatile of assets, has spent the past four weeks doing essentially nothing."
"Liquidity is a strategic asset in a more volatile world."
"When things get stretched this far, my view is you should bet against the wind a bit. I don’t think software is going out of business or that semis have found new gold. It seems extreme that chips are up on a flagpole and software’s down in the basement."