2019 was the great masking. 2020 will be all about the great unmasking and control. In 2019 central banks once again succeeded in masking all the underlying problems in the economy, the […]
Recently an annual ritual took place. Wall Street analysts setting year end price targets for the S&P 500 for the new year. Don’t act surprised but these latest price targets are higher […]
Avoiding market instability is the Fed’s priority.
Yesterday, IHS Markit reported that the manufacturing turnaround its data has been suggesting stalled. After its flash manufacturing PMI had fallen below 50 several times during last summer (only to be revised to slightly above 50 every time the complete survey results were tabulated), beginning in September 2019 the index staged a rebound jumping first […]
Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
If you believe you’ve front-run the herd, you’re now in mid-air along with the rest of the herd that has thundered off the cliff.We’re awash in financial charts, but only a few crystallize an entire year. Here are the two charts that sum up everyt…
2020 is off to the same start as 2019 ended: Trade optimism, liquidity injections and rising markets. I’ll offer a more in depth analysis in the days to come, but wanted to […]
Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
One day the stock market ‘falcon’ will no longer hear the Fed ‘falconer’, and the Pavlovian magical thinking will break down as the market goes bidless.The past decade has shown that when the Federal Reserve creates trillions of dollars out of thin air…
It has been perhaps the most astonishing divergence in the first two decades of 21st century history. In late 2017, Western economic officials (mostly central bankers) were taking their victory laps. They took great pains to tell the world it was due to their profound wisdom, deep courage, and, most of all, determined patience, that […]