By Michael Every of Rabobank
It is said that small minds talk about people, average minds talk about events, and great minds talk about ideas – and I would add the smallest of minds talk about themselves.
The smallest-minded market view is what your individual asset class did yesterday. For example, I see across Bloomberg that ‘equities went up’, ‘bond yields went up’, and ‘oil went up’. No joined-up thinking as to what this means jointly.
The small-minded market view is President Biden telling the CEO of Chevron he was “mildly sensitive” for pointing out to the government how the energy market actually works, as oil rises again.
The average-minded market view is that the White House may cut gasoline taxes for 4 July. Yet even an average market mind should also be able to see this would be bad economics because it won’t help supply, while boosting demand. But careful now, that’s an