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:

1. The “Everything Bull”

2. Higher Inflation Tolerance

3. Same Fed, Different Day

4. Flows To Know: Gold Gets Bought

5. Around the World in Eight Maps

   1. Political Polarization

   2. Joe Biden’s World

   3. Donald Trump’s World

   4. China’s World

   5. Europe’s War World

   6. Global Food and Energy’s Broken

   7. Global Chip Wars

   8. The Internet World

6. Additional Tables and Charts

7. **Special Comment: Hartnett and Gold**

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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.”…

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