Friday 28, January 2022

Wrap

This was a risk-on equity day. The major US indices surged (NDX up 3.15%). Most other stuff was quiet, although nat. gas continues to zoom up. FX and bonds subdued. Some very good results from $AAPL and $VISA were the drivers of the equity outperformance. Arguably, these stocks are not representative of the broader market.

It feels as though the market is underpricing the risks of a Russian invasion of Ukraine and the removal of the UK prime minister, as well as political disruption in France.

Biden seems unable or unwilling to coordinate the west’s response to Russia’s aggression, which surely spells more of it.

The continued strength of the oil price is surly going to keep inflation high, whatever Powell does with interest rates.

Generally, western governments seem to become increasingly unable to get buy-in from their voters, who now see them as all in the pockets of plutocrats. We are all becoming Africans.