Bad news is…rock’n’roll thunder bid!

Thursday, 14 August 2014

As long as it runs, it’s no less perverse. The bad news is good news market, that relies entirely upon failing economies to prosper, is back with a vengeance.

Yesterday’s global data mix was awful. Chinese credit issuance collapsed. Japanese GDP collapsed. German business sentiment collapsed. Overnight, US retail sales didn’t grow at all. And what does that give us? This in the S&p500 up nearly 1%:

And this in the Australian dollar cruising above 93 cents:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.