A few months ago Bridgewater declared the likely end of the "beautiful deleveraging".
Inflation is not keeping staying high enough above interest rates to whittle away debtors positions.
The recent lower western inflation readings support this outlook.
What is left then to debtors?
Further QE measures and the like.
The recent fall in 10 year US fits into this scheme, maybe the rates could fall further to 2.5% at least and below. This should make equities more attractive again, especially ones with div yields.
The newest Econtrarian contribution suggests that the easy overall credit conditions in the last 18 months are likely to continue into 2014, or at least be stable for the next 3-6 months.
If the reduction of the stimulus continue through 2014, then the second half of 2014 could see a fall off in credit creation and a fall in equity valuations could result.
The consequences of tightening will occur, as the fed will not be able to react fast enough.
Eurozone problems are likely to arise at the earliest in second half of 2014.
The cycle may turn more in favour of commodities
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