Why coronavirus makes us bullish gold, BTC, & stocks (but bearish oil)

MACRO-THEMATIC TRENDS - Report 13 Feb 2020 by Luke Gromen


Hope you’re well. Attached above is this week’s edition of FFTT. This report is 11-pages long and is a 15-18 minute read.

Coronavirus = a catalyst for explosive Central Bank balance sheet growth that was inevitable anyway

Coronavirus + past Fed pronouncements makes us bullish gold, BTC, & to a lesser extent, US stocks (but bearish oil). Key points:

* Since 2018, we’ve written that US fiscal issues were becoming acute and that if anything went wrong basically anywhere in the world (economically-speaking), the Fed’s balance sheet would have to begin growing non-linearly.

* Coronavirus means that something very big has gone very wrong in a very economically-important part of the world.

* On their own, US deficits were likely to require ongoing increases in the Fed’s balance sheet for the foreseeable future but coronavirus-related disruption is likely to spur even faster balance sheet growth at global Central Banks.

and more.

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