- The Roman philosopher Seneca said “Time discovers truth.” So what are we to make of an economy whose Federal debt is 105% of GDP? GDP is only 2.5%, debt is growing at an annual rate of 5-6% of GDP and the daily interest cost is $1.5 billion.
- Don’t think the economy is slowing down. The Fed’s Beige Book would BEG TO DIFFER.
- When it rains it pours. The first INVERTED YIELD CURVE- the 2 year at 2.807 versus the 5 year at 2.785. So do we BUY THE DIP or SELL THE RIP?