You have to admit it is really quite amazing. Two weeks ago, Central Bankers and leading politicians were exclaiming that if Britain left the E.U. it would be a catastrophic economic event on the magnitude of a “Lehman” moment. However, despite all of the “hand-wringing,” if you had been asleep over the last month, as shown in the chart below, you wouldn’t know something had happened.
Of course, it was the “rapid response” team of the Federal Reserve, Bank of England and ECB that provided “bulls” the fuel to push asset prices back to recent levels as I discussed last weekend.
For now, Central Banks have seemingly accomplished the rescue of the entire global financial system by one again lofting asset prices higher. The problem, however, remains the underlying fundamental issues of weak earnings, slowing economic growth and a collapsing Chinese economy.
There is a point, unknown to anyone currently, where the failure of monetary policy will occur. The resulting impact will likely be one of the worst financial disasters in human and financial history. But that is a topic for later.
For now, here is your reading list for the weekend.
“Things are shaky and feeling dangerous.” – Jeff Gundlach
- Brexit: Breaking Bullish or Bearish? by Dr. Ed Yardeni via Dr. Ed’s Blog
- The World Is Rebelling Against Experts by Joel Kotkin via The Daily Beast
- Worst Is Over For Brexit? by Ben Chu via Independent
- Blindsided By Brexit Bias by Timarr via Psy-Fi Blog
- We Are All Keynesians Now by Jeremy Warner via The Telegraph
- Markets Never Saw It Coming by Leo Chen via Cumberland Advisors
- The Second Domino by Scott Sumner via Econlog
- Something Big Is Coming by Tyler Durden via Zerohedge
- End All The Myths: Italian Version by Jeffrey Snider via Alhambra Partners
THIS, THAT & THE OTHER THING
- Clinton/Trump Are Both Wrong by Danielle DiMartino-Booth via Money Strong
- 5 Bricks In Wall Of Worry by Macro Man
- Central Bank Bubble Worst Of All by Comstock Partners
- 13 Thoughts About Bear Markets by Ivaylo Ivanov via Ivanhoff Capital
- What I Learnt From Paul Tudor Jones via What I Learnt On Wall Street
- Retirement Is Making People Miserable by Catey Hill via MarketWatch
- Commercial Bankruptcies Skyrocket by Wolf Richter via Naked Capitalism
- 4% Withdrawal Rate, Don’t Bet On It by Wade Pfau via Forbes
- Buffett Indicator Giving False Signal? by Luke Kawa via Bloomberg
- Fasten Your Seatbelt by Mark Hulbert via USA Today
- Stocks To Bonds: “I Can’t Hear You.” by James Mackintosh via WSJ
- When A Storm Is In The Offing via Research Affiliates
- 3-Things About Record Low Yields by Mohamed El-Erian via Bloomberg
- What The Bond Market Is Telling You by Norman Mogil via Sober Look
- Fed: It’s Just A Game Of Monopoly by Bill Gross via Janus Funds
- $10 Trillion About To Be Wiped Out by John Hussman via Hussman Funds
- Dividend Cut Warning by IronMan via Political Calculations
- Bubble In Search Of A Pin by John Hussman via Hussman Funds
- Here We Go Again. 2007 Redux by David Stockman via Contra Corner
- Dow-Utility Divergence A Bullish Setup? by Dana Lyons via Tumblr
- Long Bonds Enter Blowoff Stage by Jesse Felder via The Felder Report
- Risk Can Happen Fast by Doug Kass via Real Clear Markets
“Half the plowing is in the planning.” – Arthur Cutten
Questions, comments, suggestions – please email me.
Lance Roberts is a Chief Portfolio Strategist/Economist for Clarity Financial. He is also the host of “The Lance Roberts Show” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report”. Follow Lance on Facebook, Twitter, and Linked-In