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United States: Longer-term inflation expectations continue to climb. The market is increasingly convinced that by letting the economy run hot (and not worrying too much about “full employment”), the Fed may reach its 2% goal.
However, to get the average inflation rate to 2%, the Fed will need price changes to hold above the target for quite some time. But does this policy run the risk of overheating the financial markets?
China: China’s external debt hit a record high.
In addition, Hong Kong has blown out its budget.
Emerging Markets: Mexico’s loan growth continues to slow, with consumer credit shrinking rapidly.
Commodities: This chart shows rising EU demand for materials used in electric cars and renewable energy.
Equities: JP Morgan says that the likelihood of a Trump victory has increased recently.
The combination of the above trend and the falling odds of Democrats flipping the Senate should boost tax-sensitive shares.
Food For Thought: Ads targeting Senate races:
Edited by Devon Lall
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