Loading ...… selling off today ahead of Christmas?
Well, for one thing, don’t be surprised by a magical recovery in stocks between now and year end.
But looking at the Fed … it’s because they are self-important morons.
I mean they are mostly all rich (making some people self-important), trading their own accounts on their own inside information.
But besides that, they are most often wrong at big turning points. Of course, this time, because they wanted to massage the markets to help their commie buddies in Washington, they are forced to pull back on accommodation when they should be pouring it on based on the signals that are coming out. The yield curve is perhaps most prescient right now.
Therein, Powell’s comments today set against a re-steepening curve are inconsistent with reality … making the Fed’s existence a serial clown show for all to see.
As indicated in my previous post, the good news is this should bring in a lasting and meaningful bottom in PM’s sooner rather than later, especially if today’s reaction to the Fed meeting follows though forth with.
So, get ready for some large rate cuts next year folks – possibly as early as the first quarter (January?) … once the morons at the Fed wake up.
This will bring real yields into significantly lower levels and ignite the metals like you have never seen.
Cheers all