My article on US Shadow Banks in the AFR last month. Apologies for the firewall. Bottom line is that the Fed have a much bigger Shadow Banking Problem to deal with than even the Chinese do.
https://www.afr.com/markets/debt-markets/it-s-time-to-crack-down-on-us-shadow-banks-20190804-p52dnf
This was not about Left versus Right, it was about a generational shift, from the Boomers to Gen X. This will then also move the children of the Boomers - the Millennials - down in favour of the next generation, the Zoomers of Gen Z. The economy and the markets will now shift in line with their traits and behaviours.
The upcoming Election has been an excuse for markets to hit pause. Experience tells us that the best way to trade the 'reaction' is usually to fade it, as it will reflect pre-positioning around risk and that the initial sell-off or rally is not the start of a new directional trend. We suspect with Hedge Fund 'year end' coming up soon at Thanksgiving that traders will be flattening books, while asset allocators and lo0ng term investors, while perhaps putting some precautionary cash back in to existing trades, will wait for more clarity.
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