I am more interested in how much taller Christine Lagarde (Managing Director of The International Monetary Fund) is than Vladimir Putin.
In all likelihood, the drama that is Greece and Europe will likely find a way to "kick the can down the road" because the Euro needs the weakness that Greece brings with it so that the currency can stay depressed and thus stimulative for the Euro Area economy.
For our purposes this is just a lot of "noise" that distracts financial markets from more important issues.
So, as we head to the end of Q2 and the end of the first half of 2015, lets review some of our themes for 2015 and how they are playing out:
1) Expect The Unexpected
2) Oil Price Shock Repercussions:
3) Central Bankers Don't Like Volatility
4) The US economy will pull the global economy in the 2nd half of 2015:
5) The US Federal Reserve will begin to raise interest rates in September by 1/4%:
6) Deflation or Inflation?
US (with this mornings data release):
7) Bond Markets lead other financial markets:
8) Equity Markets are expensive:
And a new theme to add to the list:
9) The consumer is evolving: Baby Boomers are saving more and spending less as they enter retirement. The soon to be largest cohort, The Millenials, have different consumption habits.
And of course, we are still focused on the long-term!
Scott Tomenson,CIM Managing Partner, Chief Investment Strategist