Asian equities traded mostly higher overnight, with 10 of the 16 markets we track closing in the green. While the pound and the euro are loving the positive Brexit (talks) news this morning, European equities aren’t feeling it; 17 of the 19 bourses we follow are trading lower as I type. US major averages (save for the Russell) were initially liking the sound of a 48-hour deadline (call it an extension) to get another trillion or three of much needed “stimulus” (call it “support”) approved; at the moment, however, not so much: Dow down -48 points (-0.17%), S&P 500 down -0.09%, Nasdaq down -0.07%, Russell 2000 down -0.87%.

The VIX (S&P 500 implied volatility) is down -0.82%, VXN is up 0.43%.

Oil futures are off -3.29%, gold’s up 0.84%, silver’s up 1.28%, copper futures are up 1.23% and the ag complex is up 0.34%.

The 10-year treasury is trading lower (yield higher) and the dollar, to the joy of commodity bulls (save for oil) this morning is down a big -0.58% (thank the Brexit news for this one).

Led by silver, base metals, the yen, Asia-Pacific equites and gold, our core portfolio is up 0.17% so far this morning. Energy, Eurozone stocks, industrials, healthcare and Verizon are drags.

Keeping it brief this morning (our main weekly message to follow later today), here’s Santiago Capital tweeting its opinion of the convenient notion that, per Modern Monetary Theory (MMT), the federal government can literally spend the economy into a stable state of affairs with little or no adverse consequences in the process. That, if/when high inflation rears its ugly head, tax hikes will serve to calm things down. Of course there’s more to it than that, but that’s the gist, as I (limitingly) understand it. 

Fascinating the notion that the political will would exist to hike taxes anytime some government contrived measurement of inflation instructs the political body to do so:

I’m with Santiago Capital, and H.L., on this one!

Have a great day!
Marty