First off, I wanted to start out with our first ever QE retraction. On Friday we wrote about FC Barcelona's new digital tokens. It seems the CEO of Chiliz, who is producing the tokens, is a reader of ours and we had a great chat over the weekend. Our mistake was in saying that the tokens would only be available through the app. In reality, the coins will be released as an IEO and will very quickly move to a free market system with a floating exchange rate and self-custody model. Was even more interesting to hear where Alex sees the space going in the next few years. No spoilers though. Very exciting stuff!!
Moving right along to some not so exciting stuff...
Today's daily doom and gloom forecast for the global economy comes from none other than the Chief Investment Officer of the Guggenheim Institute, who is certainly a qualified authority to speak on such matters, no doubt.
In a particularly strong worded blog post that hit the Internet waves over the weekend, Scott Minerd accuses the global financial markets of mass cognitive dissonance. In short, the stocks and bonds are priced to perfection despite some glaringly obvious risks. As Scott puts it...
"The giant flood of liquidity is driven by virtually every central bank in the world injecting reserves into the system."
He goes on to say how investors have stopped doing their homework to figure out how much an asset should be worth and instead are just piling money into the indexes. He also names the Coronavirus as a possible black swan event and even if we could trust the numbers out of China, the way the mortality rate is being canceled is just wrong. It's not 2-3% but more like 18%!!
In short, a lot of food for thought in this unique blog post.
The spot of light of course comes in the very last sentence where he admits that he could be wrong about it all and we could be headed into a new paradigm, and there are certainly no shortage of Suits on Wall Street ready to jump on that narrative, but it is with the same anthem that every crisis happens throughout history.
"This time it's different."