The Dow just flash crashed as gamblers had a tantrum when Powell told them there would be no more dopium. All it will take is a good crash to get him to change his mind.
"Now who's going to buy my stocks?"
Emerging Markets have been abandoned:
Here comes more rate cuts...
"Now who's going to buy my stocks?"
The market is swinging in a wide range post-FOMC as Skynet unwinds its volatility collars. Be that as it may, significant technical damage has been done.
What pundits far and wide have forgotten is that while there has been no sign of economic "inflation" in the current economy, there has been record asset inflation. Which means that asset markets are hyper-sensitive to Fed policy while the economy is not responding at all. Which has driven a chasmic gap between the economy and stocks.
Emerging Markets have been abandoned:
Overnight risk:
Here comes more rate cuts...
