More Gavekal Research: "Why Is Every Asset Down In 2018 (& 3 Questions For 2019)"

From ZeroHedge:

Why Is Every Asset Down In 2018 (& 3 Questions For 2019)

In his latest Strategy Monthly, Louis-Vincent Gave writes...
Investors will be happy to bid farewell to 2018, a miserable year in which all assets underperformed US dollar cash.

But, Gave notes that for next year, three questions are critical:

1) Will the US-dollar liquidity squeeze ease?
2) Will the expanding US budget deficit prove a decisive factor? and
3) Are we witnessing the slow-motion unraveling of the “Chimerica” synergy between the US and China?

And what they imply is critical:

*  *  *

Option 1: A Liquidity Squeeze (And How It Ends)

Does oil start a chain reaction leading to an easier Fed?

Option 2: Growing US Budget Deficits Are Crowing-Out The Private Sector
Despite record-high tax receipts, the US budget deficit once again expanded in 2018. This is unprecedented. We have never seen consecutive deficit expansions outside of a recession....

...MUCH MORE

Yesterday:
Gavekal: Bubble 3.0: The Upside of Downside (Chapter 7)