Note Précis February 8,2019: Markets On Worn Path- Subsequent to the start of 2019, we have been watching capital markets for points of reactive sensitivity. It seems to us that the markets remain on their worn path of this cycle, namely being overriding in dependence on central bank intonations, especially from the Federal Reserve; being willing from Treasuries to Bunds to JGB to accept little income amid high duration and in equities, being willing in aggregate to overlook large drops in consensus earnings as long as the latest consensus were exceeded in actual reporting. A momentum and short term tilt in capital markets has appeared to remain strongly enough in place but risks suddenly becoming worn out. Politics in this cycle have been seemingly dismissed as irrelevant. Yet, polarization appears very much in place whether in Global trade strictures; in the post State of the Union U.S.; in Europe grappling with internal dissent and Brexit; in Asia reacting to China flexing; as well as in Levant conflagration and new quasi cold war thrusts. The opportunities of a quality tilt in investments are likely yet to be fully realized. StrategeInvest’s independent consultancy operates as Subodh Kumar & Associates. The views represented are those of the analyst at the date noted. They do not represent investment advice for which the reader should consult their investment and/or tax advisers. Any hyperlinks are for information only and not represented as accurate. E.o.e. 00
