Thread by @TheStalwart

YOU'RE FINALLY GETTING THE STOCK MARKET YOU'VE BEEN ASKING FOR

In today's @markets newsletter, I wrote about how we finally have the right conditions such that the Fed just doesn't need to worry so much about volatility and selloffs.

Sub' here: bloomberg.com/account/newsle…

@markets Fiscal stimulus and deleveraging of private sector balance sheets means there isn't much of a transmission between asset prices and real economic activity. We might already be seeing a Fed that cares less about the market than it previously had been.

@markets As I said back in July, Fiscal expansion is the off ramp from the existing cycle. And it looks like that might be playing out.

https://twitter.com/TheStalwart/status/1288872206278307842

@markets Ultimately the irony (I guess it's irony? idk) is that a lot of Fed haters also don't like the idea of fiscal stimulus. But they need to embrace it (or at least accept it) as the alternative to getting towards a less central-bank driven world/economy/stock market.

@markets I'd say it's exactly the opposite. It's precisely because we're getting stimulus checks that the Fed isn't worried about the stock market falling

https://twitter.com/garybasin/status/1367692346129850369

@markets Anyway! sub here to 5 things. More news and analysis next week and the week after that. Thanks for reading. bloomberg.com/account/newsle…