As Good As It Gets?

With the stock market S&P 500 climbing to new heights, ignoring a potential constitutional crisis brewing in Washington DC while in the Middle East long-time partners are cutting ties with Qatar and potentially threatening the Strait of Hormuz, there is a question that HSBC’s global Economist James Pomeroy wants to be answered. Is the stock market flying higher in the face of unprecedented uncertainty “As good as it gets?” As soft data diverges from hard data much like the stock and bond markets have diverged, which will turn out correct?

The Goldilocks market environment persists

Looking at an inflation map and one can immediately realize it is the developed “Western” world...