investing.com/fed-preview
"Investors have been buying U.S. assets aggressively ahead of
Any questions?
Every single Fed tightening action for eight years has imploded bond yields. But THIS time will be different...
Either the Fed tightens (begins balance sheet rolloff) which will increase deflation, or they will admit they've already created enough deflation. Either way, all roads lead to deflation, as they have for the past several decades since the failed Supply-Side Ponzinomic experiment began. There is no means to "reflate" the economy because there are no quality jobs being created. And whenever wages rise any amount the Fed reduces liquidity. Why? Because the printed money is solely for the benefit of casino gamblers. Meaning that it's for mega yachts, McMansions, hookers, and blow. Trickle down Voodoo economics.
The last RISK OFF period was early 2016 - almost two years ago. Which by sheer coincidence was the last time the Fed stepped on a landmine. So we can use that as a useful baseline:
Currently, the dollar is lower, yields are the same level, banks are higher. Meaning that yields and banks are still chasing imaginary tax cuts:
The casino is overbought, as it was back then:
The market has been getting narrower and narrower. Currently in crash territory:
New lows rose, then fell, then skyrocketed.
So far, so bad
Europe was positioned the same way:
Oil was around the exact same level:
Amazon and big cap tech were rolling over hard...
Internet stocks were rolling over as well:
In other words, it doesn't matter what they do tomorrow. Because the damage was done while zombies were playing with the free casino money they provided.
