Last week was crazy in the markets, and this one will likely be no less so - if not crazier.
When you add up all the irrationality out there, and whimsical behaviors on the part of investors, we're definitely in a twilight zone of monstrous proportions.
Last week, the equity markets showed both their sane and insane sides: sane for dipping on sagging macroeconomics and insane by rallying at week's end on a bet (frankly, a guarantee) that the Fed will lower rates again this month, and then again and again...
But it's these low rates (now negative in Japan and Europe) that got us into this pickle in the first place.
Sure, in the near-term, low rates buy time and a rationale for dip-buying.
Longer-term, however, the debt bomb they create will eventually explode and money will burn.
When will the insane get sane? That is, when will markets stop rising on bad news?
Again, we saw a smidgeon of that last week, until the insane reappeared, almost on cue.
Well, we came within three basis points of a second “Fed Red Day” yesterday, September 18, when the Fed lowered interest rates and no one saluted (markets fell rather sharply, then recovered). If you are new to Critical Signals Report,... Read more »
By Sunday morning last, the smoke rising from drone attacks on Aramco’s oil production facilities in Saudi Arabia could be seen from outer space. Rising energy costs from this singular event (which significantly reduced global oil production), when combined with... Read more »
Welcome back to What's Happening Now, your weekly guide to what's going on right now and why it matters to you - and your money.
In this topsy-turvy world of Fed markets rather than stock markets, bad news (as in the economy is worsening) can often translate to good news to investors, because it means more Fed "support" - i.e. the "faking it" policies of a now openly rigged to fail market.
Coming off a week with no less than seven Fed officials, including Fed Chair Jerome Powell, opining on interest rates and the state of the economy, markets closed last week confused for good reason.
We're going to dive into why what the Fed says doesn't matter; rather, it's what it does and how the markets react to it...
Welcome back to What’s Happening Now, your weekly guide to what’s going on right now and why it matters to you – and your money. In our last column on compressed yields, we prefaced the long Labor Day Weekend with... Read more »
This will be a brief but extremely important Critical Signals Report. With the month nearly over and as we head into a holiday weekend, we wanted you to know that the U.S. 10-year Treasury Yield may be in for its... Read more »
The global bond market is spiking, which means unprepared investors in stocks, credits, and even real estate are poised for a beating. The first symptoms of this credit crisis are appearing in Europe, from where I’ve just returned. As career... Read more »