Market Observations from a Hospital Waiting Room...

Yields are a problem... so too is the underlying economy.

Dear Fellow Expat:

Good morning from Johns Hopkins Hospital in Baltimore. I’m currently sitting in a room having a dye test. They told me that I would be there for an hour. Since the internet doesn’t work, I can’t watch any shows – so I had to connect through my cell phone.

That means… I have about 45 minutes to provide insight into what’s happening in the markets—the risks… opportunities… and more. So, grab your coffee or water… or, in my case, nothing (I can’t drink until the scans are done)—and let’s dive right in.

The Truss Talk Begins

Do you remember Elizabeth Truss?

No? Seriously? Well, I remember her name. She was elected Prime Minister of England in late 2022. However, she quickly failed due to her commitment to austerity and questions about her budget plans. A head of lettuce stored at room temperature lasted longer than her time in office.

Truss’ failure was primarily built on a massive liquidity crisis. The last liquidity cycle bottomed out in October 2022 – coinciding with the b…