Which End Is Up? April 12th, 2019 by John Gross

• Brexit comes off the boil on the front burner, only to continue simmering on the back burner.
• The IMF scales back global economic growth.
• The U.S. / China trade talks continue without a clear end in sight.
• The U.S. and EU are now looking to impose reciprocal trade tariffs, thereby widening trade tensions.
• Major global equity markets remain strong, with most at or above their 52 week moving average.
• The S&P 500 is within just 23 points of its record high.

Very odd and conflicting elements all the way around

On the metals front, similar contradictious exist.

Inventories overall continue falling, but prices have not responded in any meaningful way.

At the risk of repetition, at some point, markets will recognize the shortfalls, and the longer it takes, the stronger the response will be when they finally do.

Regards,
John

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