–Tuesday September 28, 2021 showed us a very predictable market reaction to No New News, save greater conviction that inflation may not be that transient and rates will be going up. –Market participants (including their computers) have been conditioned by the media to react in this way over decades and there is no nuance with the…
Tag: Fed Tightening
Fed OMC day: Usually a good day be a stock buyer!
— Market history of the past 11 years confirms this assertion. — It is a gift given to us by the media … tales “full of sound and fury, signifying nothing.” –Today’s report was par for the course, causing a knee-jerk 382 point drop in the Dow followed by a barrage of inane, Powell parsing commentary….
Interest rates and stocks: Heads you lose … Tails you lose!
The Great Conundrum In January of 2020 the 10-year US Treasury opened the new year trading with a yield of 1.8%. The S&P 500 was on its way to a 4.6% gain and a new record high by February. Then Covid-19 hit and in the flight to safety that followed the 10-year yield went below one half…
The Death of TINA (There Is No Alternative)
Wait a minute! The reports of TINA’s demise may be greatly exaggerated. If the acronym TINA is not part of your daily vocabulary, I can understand. The concept of “there is no alternative” is a term some market savants have used to explain the market’s strength over the past few years. There is no alternative to…
“Damn the torpedoes … full speed”…ahead!
My title today derives from a quotation attributed to rear admiral David Farragut during the 1864 Battle of Mobile Bay. The actual sequence went more like this: “From his high perch, where he was lashed to the rigging of his flagship, USS Hartford, Farragut could see the ships pulling back. “What’s the trouble?” he shouted through…
Session 47–Bernanke Speaks!
Maybe our title should be, “Bernanke, et. al. Speak, Repeatedly”. For the most part, the message is the same: the tapering of QE will be data-derived and dependent on economic fundamentals in the United States, unemployment stats in particular. The Fed Chair addressed The National Bureau of Economic Research conference today. His topic was a…