As the market sort of rallies on the back of Fed Head Jerome Powell suggesting the lack of US stimulus might be a problem, thereby anticipating a new stimulus will come – for that is the way markets think. Meanwhile, there are a number of themes discernible amongst the noise that is the Market this morning...

The Norwegians are pivoting their $1.15 trillion pension fund away from European stocks towards US equites. The FT says the Nogs are going to cut Europe from 33% to 26.5% while raising US allocations to 48%. "Better represents the distribution of value creation" said the Minister of Finance. It makes sense: US stocks represent some 65.5% of global market cap. Europe? Not so much. Yet Europe was 50% of Norway's equity allocation as recently as 2012.

The timing is significant. There is much talk about how overvalued US stocks look and how Federal government stimulus, over-easy policy by the Fed, and Donald Trump's constant talking-up of US Stocks and tax-handouts, have boosted US valuations and driven the continuation of a 11-year bull market. On the other hand, it's been NIRP (Negative interest rates), QE Infinity and "do-what-ever-it-takes" that's stopped European stocks and sovereign debt tumbling into the abyss these last few years.