Hartnett: Gold Gets Bought
The Flow (Chart) Show
Overview:
Hartnett’s weekly missive is very good. While not short on written commentary in his trader-speak staccato style (reminiscent of e.e. cummings) the charts steal the show today both visually and topically. Our chart-centric presentation of the BOA Chief strategist’s observations should reflect that.
His theme, aside from the “8 Maps” title, is a continuation of last week’s observations. Specifically, the “rally in everything” is a function of Global Central Banks (seemingly coordinated) proclivity to ease even while inflation is still burning.
Recall last week in his Goldishocks report, Hartnett noted the Fed had almost definitely decided to tolerate higher inflation at 3.6%. This, rather than burst the bubble in stocks. Ours, and his conclusion from that is, the inflation target has been raised in practice, if not in public statement.
Sections and Charts:
The “Everything Bull”
Higher Inflation Tolerance
Same Fed, Different Day
Flows To Know: Gold Gets Bought
Around the World in Eight Maps
Political Polarization
Joe Biden’s World
Donald Trump’s World
China’s World
Europe’s War World
Global Food and Energy’s Broken
Global Chip Wars
The Internet World
Additional Tables and Charts
**Special Comment: Hartnett and Gold**
1- The “Everything Bull”
Tale of the Tape:
Fed desperate to cut rates, ECB/BoE need to cut rates, SNB cutting rates, PBoC also cutting rates, only BoJ raising rates (by a minimal 10bps)
There have been 55 global central bank rate cuts over the past 6 months (Chart 3); the DNA of today’s “everything bull.”…
