Friday, January 19, 2007
Macro man was busy with admin today so hasn't had time to post anything. Not much to say, really, other than than the soft landing theory appears to be getting more traction than a set of snow tires.
To date, this hasn't had much of an impact on equities or commodities, though it has put some pressure on bonds. However, fixed income in the US and Euroland has held critical support levels, so the repricing of monetary policy has yet to have a malign impact. And of course, the carry trade (to which Macro Man remains sadly underexposed) is faring well.
At this point Macro Man remains underexposed to equities and carry; next week he needs to make a choice. Perhaps contemplation over the weekend will make things a bit clearer.