US Treasury Secretary Mnuchin says not surprised markets having a bit of a correction
Mnuchin has been meeting with PBOC Governor Yi Gang
Difficult to take much issue with Mnuchin's correction comment, if indeed it turns out to be a correction. Gotta say, even it turns uglier its had a great run so no, not a surprise.
- US economy fundamentals remain extremely strong
Errr …. debt funded tax cuts, debt funded fiscal profligacy …. given those, OK then.
- Markets are not efficient, overshoot in both directions
- nothing specific today for the market to react to
- market handling supply from Fed unwinding very well
- US concerned about Chinese yuan depreciation
- weaker yuan should not be competitive devaluation