Speaking about markets in webcast
- looks like Fed Chairman Yellen will end up with a good legacy
- we are entering middle innings of tightening cycle
- getting very near and for US corporate credit outperformance versus treasuries
- he sees no recession or freefall in US economy based on leading economic indicators
- financial conditions are still very very loose
- next leg in US dollar is down as Fed tightens*
- credit spreads show no recession and 6 – 12 months
- strange environment to have US tax cuts with economy growing
- tax cut will boost growth, be bond unfriendly
* it is somewhat curious that he expects the next leg in the U.S. dollar to be down as the Fed tightens. That might be in anticipation of a recession/slowing afterwards. What he does not say is the timing of that move
