Everything is perfect

Macro

Steen Jakobsen

Chief Economist & CIO

Summary:  I have done the first macro presentation for 2020 and to my own surprise it ended up being titled: Everything is perfect...


Link to presentation

Maybe the color and motive of front-page of the presentation gives away, the “slight irony involved:

There is for my money a big risk we are in a “false positive” period of macro, because looking at 2019 – Everything was Perfect:

T.I.N.A became the most powerful woman :)

Both monetary & fiscal policy reversed course and FED – as is often the case these days- panicked on REPO

SNB meanwhile continues to expand its balance sheet massively, but every time they intervene they make the CHF stronger not weaker why? TINA of course!

There is a “hope” we have hand-over for “growth stimulus” from US to rest of world, and when we say rest of world we mean China. China’s GDP in $-terms contracted last year, which meant slow global growth, this year starts with a bang – USDCNY is down, meaning GROWTH is up in the rest of world supporting commodities...

Finally – we and our advisors all agree two things matters in 2020:

The US election and most importantly, the direction of the Dollar. IF they dollar does not weaken we will get RECESSION, if it “helps” by being weaker world could recreate a new okay year for equities. What will it be?

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Trade responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.