The Fed did largely what I suggested they might (i.e., reduce rates by 50 basis points) – but the market isn’t buying it. It’s not every day you see the Fed cut by 50 basis points and the Dow Jones fall over 700 points….
Jay Powell (and the Fed) have been steadfast on holding rates the past few months. However, given the emerging threats to global (and U.S.) growth (with CoronaVirus) there is perhaps scope for the Fed to reconsider…
Stocks are correcting. The 10%-type correction we penciled in at the beginning of the year is now taking shape. Now for most readers, the move lower will bring a wry smile….
After 20+ years trading – its difficult to recall a time that resembles what we see today. Put another way – it’s not often you see equities and bonds at complete odds.
The ratio of copper to gold can serve as another indicator of the market’s appetite for risk appetite versus the perceived safety of say treasuries. So what’s the ratio telling us today?
Coronavirus is hitting China’s economy where it hurts – and much harder than Trump’s tariffs. But at this point – the market is shrugging it off? Why? Look no further than central banks
Fears of Coronavirus’ economic impact(s) are starting to weigh on stocks and commodities. However, gold is really starting to shine..
Today the Fed reiterated its commitment to inflation at 2% via lower rates. What’s more – the current liquidity spigots will stay open to at least April.
This post summarises what I’m watching as we head into a big week of earnings…
Economic growth is slowing. What’s more, the bond market tells us not to expect any acceleration this year.
