The Economy: More Cowbell! The Bank of England (BOE) cut interest rates for the first time in 7-years. It also expanded their Quantitative Easing (QE) program to include buying corporate bonds. While these moves would suggest that Brexit has raised the risk of recession, global financial markets screamed higher with the joy of more global monetary stimulus. The further increase of global cheap money should foster expansion in share buyback programs. This will create higher per share profitability without the need for capital expenditures. Hence More Cowbell!
Food for Thought: Traditional polling may have seen its heyday. Pioneered by Gallup, polling techniques rely on two basic behaviors: First, a population willing to subject themselves to interrogation by strangers. Second, a population thrilled enough to participate and provide truthful answers. Neither of these behaviors appear to be a given these days. Witness the Brexit miss; witness misses in the U.S. presidential primaries. Except for those with a vested interest, polls are increasingly dismissed as misinformation by most.
Music of the Week: Gabriela Anders’ “Bossa Beleza”