Geopolitics aside, things look pretty solid
The Middle East is overshadowing a clear improvement in market fundamentals
Spiking tensions in the Middle East have been driving markets recently as risks of further escalation are elevated.
Yet, this is overshadowing some positive developments for financial markets, and liquidity-driven asset classes in particular.
Central banks worldwide have pivoted and are thinking about speeding up the pace of rate cuts. Today, the Bank of England is the last to join that list.
Global Money Supply is already rising again and will accelerate after the wave of stimulus measures announced by China.
The Bank of Japan is not going to hike rates anytime soon, reducing the odds of another Yen Carry Trade Volmageddon.
Official inflation numbers are dropping below central bank target rates, opening the door to steep rate cuts.
High Yield bond spreads remain tight, signaling relatively low odds of a credit event.
Earnings indicators are flashing green, pointing to faster earnings growth ahead.