The United States: Economists continue to forecast higher inflation next year, with the core PCE index climbing above the 2% level.
Morgan Stanley expects inflation increases to be driven by services that exclude housing and medical care.
Equity Markets: The retail sentiment on equities has soured.
Institutional investors have been moving into money markets.
However, Merrill Lynch’s clients have been buying stocks in recent weeks.
Emerging Markets: Despite the market rout, most EM economies are still in growth mode.
Credit: One of the reasons for the weakness in IG is US corporations selling their holdings as they repatriate cash to the US and deploy it.
Eurozone: Will the ECB exit its QE program later in the year? Here is one scenario.
Rates: US households are not significantly exposed to floating rates (such as home-equity loans).
Energy: OPEC’s cuts are offset by the non-OPEC production increases.
Here are the contributions to non-OPEC production over time.
Food for Thought: Sports-betting legal status by state.
Edited by Joseph N Cohen
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