Markets and futures puked overnight on "Obama announces airstrikes in Iraq".
In reality, Obama said (and I watched him say it) that he's authorized airstrikes in the future if IS advances on Erbil or moves against American embassy staff.
Typical frickin' hyperbolic press.
Anyway, I've since checked the US equity futures and they're green on the day right now. Does that create follow-through? After all, it means someone is buying, no? And really, all the selling has been simply because everyone has been selling because they expect everyone else to start selling, right?
What a bunch of whiners. BTFD.
Here's the news:
FT Alphaville - BTFD. Except that's not what BAML said. They said
let’s face it, it’s a mid-August Friday and the pool of dip-buyers is too small to cope with the army of risk-reducers.Then again, BAML only revised their end of year 10Y yield target from 3.5% to 3.1%, so I wouldn't put much faith in their analysis.
Calculated Risk - hotel occupancy up 4.5% yoy. That's positive economic data. I surmise that you should react by puking all your stocks and hiding in cash.
Reuters - Modi sticks to failed recipe in inflation fight. Like I said, India doesn't get fixed overnight. Modi can't just wave the Holy Handbag of Margaret Thatcher and fix things: for example, he needs to invest $9B in cold storage and refrigeration logistics. Um, which also requires roads.
Reuters - monsoon outlook improves. The overall shortfall is down to 18%. It's still not good, but at least it's not disastrous anymore, and maybe late planting can rescue the farmers. Good for gold? Or at least not as disastrous as a couple weeks ago?