According to BofA, we've just seen one of the largest month-over-month allocations to European equities on record.
Is this signaling a European comeback, or simply a rotation ? source : BofA
Deutsche Bank recently updated their Trump tariff inflation forecasts as shown below:
If the 25% tariffs on Canada/Mexico have a 50% pass-through, PCE inflation would rise 80 bps. A 75% pass-through would add 110 bps to PCE inflation. The Fed won't like this. Source: The Kobeissi Letter
The BTFP, introduced under Biden, acted as a lifeline, letting regional banks trade toxic, low-yield debt for loans at par value, disguising their insolvency.
Now drained, what will happen to the program? Could this put the regional banking system at risk? Source: FRED, The Coastal Journal
Bear markets pale in comparison to bull markets, both in market movement and duration.
Remember this chart during the next - and inevitable - correction or bear market. Source: Peter Mallouk
The 2nd largest rotation into european equities in the last 25 years is currently taking place.
Source: Bloomberg, Barchart
‼️The Bank of Japan is set to HIKE rates again on Friday:
The market is pricing a 90% chance that the BoJ will raise rates by 0.25% to 0.50% on Friday, the highest in 16 years. That would be the 3rd rate hike in less than 12 months, after 17 years without an increase. Source: The Kobeissi Letter, Bloomberg
Strategic Bitcoin Reserve legislation is gaining momentum.
11 states, including Florida, Wyoming, and Massachusetts, have introduced bills to secure Bitcoin as part of their state reserves. Source: TFTC @TFTC21
G7 vs. BRICS - Global GDP
Source: Barchart, Visual Capitalist
