Turns out it's a feature not a bug, according to Tom Lee, co-founder of Fundstrat Global Advisors:
"I think it shows that maybe the markets are a lot less invested than people think. My takeaway is that there's a lot more cash on the sidelines," Lee told CNBC's "Squawk Box." "That's why we had a huge sell-off and we were able to recover most of that decline."
"U.S. stocks have reclaimed more than 90 percent of their post-Brexit losses, and are flirting once again with all-time highs. However, sovereign bond rates across the globe have also fallen sharply since the June 23 vote."
"That's what's scratching heads, because the equities market is telling us that the damage is limited, but then we're left with lower interest rates. I think investors are kind of confused at the moment," Lee said.
http://www.cnbc.com/2016/07/05/tom-lee-investors-are-confused-after-brexit-and-thats-a-good-thing.html
Maybe the lower rates mean investors think interest rates will stay lower longer-to use the Scott Sumner analysis.
"I think it shows that maybe the markets are a lot less invested than people think. My takeaway is that there's a lot more cash on the sidelines," Lee told CNBC's "Squawk Box." "That's why we had a huge sell-off and we were able to recover most of that decline."
"U.S. stocks have reclaimed more than 90 percent of their post-Brexit losses, and are flirting once again with all-time highs. However, sovereign bond rates across the globe have also fallen sharply since the June 23 vote."
"That's what's scratching heads, because the equities market is telling us that the damage is limited, but then we're left with lower interest rates. I think investors are kind of confused at the moment," Lee said.
http://www.cnbc.com/2016/07/05/tom-lee-investors-are-confused-after-brexit-and-thats-a-good-thing.html
Maybe the lower rates mean investors think interest rates will stay lower longer-to use the Scott Sumner analysis.
This morning is sort of ironic. The US indexes are down, as is the CAC and the DAX. The only one up? The FTSE.
Meanwhile, after remaining steady last week after a bad week of losses, the pound is down another $.3 cents today.
Even if I were a believer, this is enough to convince me: there is no God. LOL.
I really hold my fellow Brits in disdain for falling for this campaign of charlatans. They know they are charlatans which is why they've all retired to private life or pulled back in any case. Boris Johnson-'it can not be me' and Nick Farage-'I want my life back.'
http://lastmenandovermen.blogspot.com/2016/07/after-making-huge-mess-nick-farage.html
I know there is a war between those who talk about the danger of the ignorant masses and those who believe you can never criticize the masses just the elites. But it's hard not to feel that the ignorant in general are on the march right now.
http://foreignpolicy.com/2016/06/28/its-time-for-the-elites-to-rise-up-against-ignorant-masses-trump-2016-brexit/
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