Access the Powerpoint slides of this month’s ET Pro monitors here.
Access the PDF version of the ET Pro monitor slides here.
Access the underlying Excel data here.
- No change in October: there is no Fiscal Policy, Deficit or Austerity narrative, at least as it concerns markets.
- Sentiment on these topics has rebounded slightly, but it still remains deeply negative.
- As with inflation, we believe that is because of narratives in political world. There, we do observe an emerging language about US debt levels, deficits and spending. It exists purely in political and wonkish debates, and has been almost completely untethered from financial markets discussion.
- We have said that the monetary narrative in 2019 is that it means nothing in the real world and everything in the world of asset prices. Is common knowledge about deficits the opposite? Irrelevant to markets, but meaningful to the real economy?
- Not yet. But as we argued in our September report, it does imply a complacency about the issue in markets.
Narrative Attention Map
Fiat News Index
Are Congressional oil sales risking an oil price spike? [Houston Chronicle]