Today’s Fed QE
Perhaps we need an honest national dialog about declining expectations, rising inequality, social depression and the failure of the status quo.
I was told many years ago when I started in this business that it wasn’t my job to predict the future. Our job as investors is to properly and accurately interpret the present.
Last week’s selloff did less damage than it may have felt like. The drop stopped in the area of 3 crossing uptrend lines, ranging in length from short term to long term. Here’s what would tell us whether the uptrend is still in force, or signal that something evil this way comes.
I have added 8 new stocks to the swing trade chart pick list, including 2 shorts.
Is that really what you want to spend your time doing, paying higher taxes?
The bear market in Treasuries that started in August devolved into an outright crash last week. Meanwhile, evidence shows that cash in Primary Dealer accounts has exploded to the highest level in history, with the biggest weekly increase in history. There’s also circumstantial evidence that that cash came directly from US Treasury, away from the publicly visible means that we already saw last week.
The U.S., after all, is running unprecedented peacetime deficits, with a new $1.9 TN stimulus package scooting through Congress. This legislation will be followed by what is sure to be a major infrastructure program. There is literally colossal deficits and Treasury issuance as far as the eye can see.
While the past decades have seen rapid urbanization in India and China, cities in Africa are growing fastest in the current one. In the first half of the 2020s, the U.N. Population Division expects 28 cities to grow at an average annual rate of more th…
The latest auto manufacturing figures released today mark “yet another month of decline for UK car production” and are “a grave concern” according to Mike Hawes, SMMT Chief Executive. The total for January 2021 of 86,052 is the worst start to a year si…
Primary Dealers were holding record levels of inventory with record levels of leverage since late Q3 2019. It was all hunky dory as long as bond prices were rising, or at least stable. The mirror of that is yields falling, or stable.
Ever since then I regularly warned about this in my Liquidity Trader reports. I said that it’s a two way street, and that when the inevitable decline in Treasury prices started, it would devolve into big margin calls to the dealers.