I hope everyone is having a nice weekend after another volatile week.
Last week I asked if the tone was changing in markets in Tone. We didn’t get a resolution as markets were mostly unchanged by end of week, but we did have some serious volatility in the meantime. We have two sources of instability in markets: The Fed and Trump. Even the queen of Banana Republic policies thinks that’s the risk now.
Some other past notes that will be relevant for this week’s discussion are as follows:
Lost Generation was a deep dive into Gen Z and their dissatisfaction with the economy and affordability.
Doomsday and the Demographic Time Bomb describes the excessive allocation to equities for Baby Boomers and the risk of a possible rush to the exits and what that would mean for markets.
The Terms Have Changed was a look at prior actions by the US to rewrite the global trade and economic world order and why this time has played out differently.
Expectations discussing the importance of anchored inflation expectations.
We will finally get some data this week, with the delayed September NFP report, S&P PMIs and UMICH alongside some other third tier data.
Let’s dig in.