Macro Thoughts

Thought to ponder…

“Another concept used to cope with uncontrollable events is known as amor fati which is Latin for ‘love of fate’. The exact term can be traced back to the nineteenth-century German philosopher Friedrich Nietzsche who describes it as, ‘My formula for greatness in a human being is amor fati: that one wants nothing to be different, not forward, not backward, not in all eternity. Not merely bear what is necessary, still less conceal it … but love it.’”

Ross Edgley
The Art of Resilience

The View from 30,000 feet

Last week was Super Bowl week for economists, with fresh guidance from the Fed, ECB, BoJ, as well as data releases on GDP and inflation. The economic data fireworks show was set against a busy week of earnings data, which acted as garnishes to the main course of economic data. The Fed was the first dish served, which could aptly be described as a nothing-burger, served with a side of data dependency. The ECB followed suit with a similar message, but against and wildly different economic backdrop for the Eurozone, which suffers from similar inflationary concerns, but a dramatically different growth landscape. As expected, the BoJ, provided hints that the days of yield curve control pinned at the zero-bound are numbered, setting the stage for the largest change in Japanese markets in three decades. Meanwhile, the news was filled with daily speculations that China would act more decisively to head off deflationary pressures threatening to push the country’s economy into a cold dark economic winter.

  • The Focus Point Leading Market Indicator continues to trend higher, moving further into Neutral Conditions
  • Better than expected inflation and growth data, and a Fed that is getting everything they want for the moment
  • Earnings Season – Steady as she goes
  • The most Frequently Asked Question from clients this week: What keeps you up at night?