animal spirits

Hartnett also referenced the troubles in credit and private equity as examples of peak liquidity and animal spirits.

The Chinese Communist Party has tried to boost consumption to a larger share of the economy, but animal spirits are in a box.

Panmure Liberum strategist Joachim Klement noted that in the U.S. value stocks suffered a “lost decade” from 2012 during an era of near-zero interest rates as policymakers artificially repressed the cost of money to rekindle animal spirits in the economy following the global financial crisis.

But the tariffs are doing economic damage by raising costs for consumers and businesses and by dampening animal spirits that should be soaring with his tax bill and deregulation.

“All of these, not to mention the S&P 500’s linear rally nearing 40% from the 4/7 intraday low, have ignited corporate and investor animal spirits alike,” he says.