The United States: The news flow index which measures trade policy risks remains elevated.
The Eurozone: Spain showed a surprising spike in industrial production (although these data can be quite volatile).
Rates: US government bond ETFs continue to see inflows.
Equity Markets: Mutual funds that focus on US equities are still shedding assets as the rotation into ETFs continues.
Emerging Markets: This chart shows the trajectory of Argentina’s current account deficit versus the public sector net international investment position. Argentina was highly successful in its rapid-fire dollar bond issuance recently (including the 100yr bond), but such liabilities become a nightmare when the peso gets devalued.
Food for Thought: Who is confident in their nation’s judicial system?
Edited by Joseph Cohen
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Thanks to Josh Marte (@joshdigga), Matt Garrett (@MattGarrett3), Joseph Cohen (@josephncohen), Ycharts.com, S&P Global, and Moody’s Investors Service for helping with the research for the Daily Shot.
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