Monday, March 18, 2019

Recession is still some 6 months or 9 months in the future

"Well the economy is still quite strong. And you had the supply of reserves.... The Adjusted monetary base still in excess of $4.3 Trillion. So clearly there is a lot of money in the system. And the economy has been doing quite well and will probably continue to do well. But economies and the Stock prices can diverge as we saw at the bottom of 2009 as the economy was still going in the dinger and stock prices were coming up very sharply from the lows."

via Bloomberg Daybreak Radio

Tuesday, February 26, 2019

China government cut in Bank reserve requirements and tax cuts

Dennis Gartman is bullish stocks in the long term and one of the reasons he is feeling bullish is because of China.

"We continue to view the Chinese government’s cut in bank reserve requirements and the tax cuts announced nearly five weeks ago are materially long term supportive of shares in China and eventually to the markets abroad. As we have said previously several times, reserve requirement changes are the monetary authorities’ equivalents of a handy piece of lumber applied to the head of a reluctant mule: It does indeed get the mule’s attention and sometimes the mule even likes it!"