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🔥 Yields, Yields, Yields

Corrr blimey, guv'na.

Yields have had it off.

What's the story?: Obviously, bonds have sold off. But what is the driver?

Our guess?

The Fed doesn't believe inflation is coming, so they're keeping conditions nice and loose...

In other words, there is no sign of tapering or interest rate rises, even in the face of higher growth prospects.

A scary take:


🚫 Toblerones are going nice and cheap...

The Swiss France has been getting pummelled of late.

USDCHF


With all this risk on sentiment of equities flying higher, bonds coming in for a heavy landing and industrial commodities booming, the Swiss franc has been feeling a little under the weather.

Why's that?: The franc is seen a a safe haven asset.

That means that when conditions turn to crap, people want to buy it, since Switzerland is a neutral country with non-volatile politics and a pretty strong economy.

So there is a broad difference between the two countries, especially when many reckon US outperformance is coming.

🔞 Why's the age of a population so important?


Here's a few articles for you to look at to thrash out what we were chatting about in the pod.

Tail risks – A surge in inflation looks unlikely | Briefing
Dec 12th 2020IN 1975 Adam Fergusson, a journalist on the Times, published a book called “When Money Dies”. A history
Rose Ferro Business NewsEditor
Inflation won’t be caused by money printing alone
One of the narratives flying about as to why gold is on a tear is because ofhedging against inflation. Over the years, gold has been seen as a price stability mechanism; a tangibleway to counteract the inflatory policies of central banks... It predominantly has this tag because it’s priced in do…
MacrodesiacDavid Belle
Declining Labor Force Participation Will Weigh on U.S. GDP Growth--And Fed Monetary Policy
S&P Global
Here’s why central banks want you to have sex more
Yes that’s right. Instead of them f*cking you (temporarily). It’s an audacious title, but one that is likely very true. Why? It all comes down to the simple fact that most central banks in the developedworld want more inflation - and in fact, they’d like to exceed the target. Powell back at Ja…
MacrodesiacDavid Belle


🚚...and what about supply chains?


https://beacon.com/company/about

UK digital freight forwarder Beacon continues rapid expansion with Hong Kong office opening
/PRNewswire/ -- London-based Beacon, the next generation freight forwarding and supply chain finance company, has continued its rapid growth trajectory by...
PR NewswireBeacon

🏠 We spoke about property too

What does centuries of UK housing data tell us?
What we’ve learned from nearly 200 years of housing data - and is property really a better investment than a pension?
What 174 years of data tell us about house price affordability in the UKDuncan Lamont
UK house prices and three decades of decline in the risk‑free real interest rate
Staff working papers set out research in progress by our staff, with the aim of encouraging comments and debate.
Bank of England

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