by John Rubino
Global stock (and bond and real estate) markets have been on a tear this year, apparently in anticipation of three big events. And last week they got them all, sort of:
The US and China announced a “trade deal” that is flimsy but a deal nonetheless; the Fed promised to refrain from raising rates until (official) inflation bursts through the 2% target and stays there – which might be a really long time; and Britain handed its pro-Brexit Conservatives a massive parliamentary majority, pretty much guaranteeing that departure from the EU is finally imminent.
The effect of all this closure is to remove what the markets see as the main outstanding risks, thus clearing the way for financial asset prices to rocket to the moon in 2020.