The data today includes the FHFA housing price index at 9 am ET along with the Case-Shiller report. Then at 10 am ET, the main events of the day are the Richmond Fed and consumer confidence.
Looking at the big picture, the climate numbers this summer are increasingly concerning, with July on track to be the hottest month ever and Antarctic sea ice not recovering in winter like it usually does. Hurricane season is coming up and warmer surface ocean temperatures amplify hurricanes. Insurers are leaving Florida and that’s largely due to claim fraud but if there are no big storms, there are no claims.
I’m sure that humanity can cope with a 1.5C temperature rise (although it will be brutal in India) but the fear is that we get some kind of runaway warming, rather than a gradual rise. The fiscal response of something like that would dwarf the coronavirus spending and implode the bond bubble.
Fear and panic are a cheap currency on the internet so viral charts like this can’t really be trusted but don’t discount the risks. Unfortunately, many of the best trades in the decades ahead will be climate-related, whether that’s a smart green transition that includes nuclear power and electrification or disorder, you will need a playbook.