“Something’s Gotta Give”
Regardless of what it is – when the pain becomes too much – generally something has to give. In context, I am talking about oil prices, equity prices and business shutdowns.
JP Morgan Forecasts 2020 Recession
JP Morgan join a number of leading banks calling for a recession in 2020. Reality is we are already in it. Forecasts for the drop in GDP currently range from 5% in Q2 to as bad as 24%. They will change by the hour. Whatever the number – it’s going to be severe.
Market Yawns at Fed’s 50 Basis Point Cut
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….
Here Come the “Knights in Shining Armour”
Fear not dear reader – our fearless Knights in Shining Armour are on their way! According to CNBC – markets now widely expect the Fed to cut short-term rates by at least half a point over the next month or two.
CoronaVirus Not the Entire Reason Stocks are Correcting
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….
“I Love Riding a Horse that’s Running”
Renowned billionarie hedge-fund titan – David Tepper – told CNBC this week he remains bullish on the market.
Focus is on the Fed’s Balance Sheet (not Iran)
The market is far less interested in Iran (and potential consequences) than it is the future actions from the Fed.
Savers: Assume a ‘new’ Brace Position
Low interest rates are a sign of an economy in need of dire emergency assistance.
Therefore, it follows that negative rates are a step worse.
This post explores why negative interests cannot work.
Fed Admits it “Doesn’t Know”…
There is only one certainty with economic forecasts: and that’s change.
If you accept that logic – the more important ability is being amenable to change.
That’s where the Federal Reserve Bank find themselves today.
They accept their forecasts (or biases) are quite often are wrong. And from there, are ready to move quickly to correct any mistake.
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