It was another absolutely crazy day on the political front in the U.S. and you know what that means: record high stock prices!
And to let Trump tell it, we’re headed inexorably higher if you’ll just let him cut taxes for himself for middle America:
Wall Street shook off some of the craziest shenanigans yet out of Trump’s Twitter feed and also ignored the rather glaring discrepancy between what the Fed seems to be saying about inflation and the fact they are sticking to the near-term rate path (i.e. that would seem to suggest they are concerned about bubbles and financial stability even if they aren’t going to admit it). The Russell underperformed again.
Yields and the dollar dipped on the mixed message sent by Fed minutes. Earlier in the session, yields fell after Evans told reporters that it’s too soon to decide on a December rate hike:
December odds were steady after the minutes, hanging in there ~75%.
The euro was bid again, on relief in Spain and as the dollar was under modest pressure:
The rollercoaster continues for Spanish equities, which rebounded on Wednesday in line with what counts as a more “conciliatory” atmosphere between Madrid and Catalonia, although “conciliatory” is an extremely relative term there.
“Puigdemont has a five-day deadline to clarify if he declared independence,” Rajoy told parliament Wednesday. After that, he’s got “until 10am on Oct. 19 to rectify situation,” Rajoy added. Draw your own conclusions there.
Oil was up a third day after OPEC lifted its demand forecasts for this year and although WTI is solidly above $50, it’s the same old dynamic. “A lot below $50 and producers do produce a lot less, but conversely, much over $55, there is going to be a lot of extra production. We’re range-bound, but it’s $50-$55 and not $45- $50,” Jay Hatfield, a portfolio manager at the InfraCap MLP exchange-traded fund, remarked.
Japanese stocks are of course riding high, sitting at their highest levels in over a decade as economic optimism and ultra-accommodative policy support ahead of this month’s snap election:
Oh, and South Korean shares tacked on another 1% today and have now left “fire and fury” in the rearview:
Ultimately, there’s only one question worth asking: what happens when the flow dries up?…
‘Close Your Eyes And Buy.’
RE: ain’t that the truth.
“Cut taxes for (himself) middle America.” lol
No, those stink-bomb US stocks are really DOWN yet again – like they’ve been tumbling all year – in terms of almost every currency on earth except for the garbage US dollar, worst & weakest currency in the world.
US stocks gained a meagre one-tenth of one percent today, while the dollar lost another half-cent today, down again to make it 5 consecutive days of losses.
That means that US stocks actually LOST 0.4% today for 96% of humanity outside the US. The dollar is set to close today below a crucial support level, which thus portends another massive crash in the dollar even worse than its previous 20% collapse in the first 8 months of this year.
As I’ve preached all year, SELL ALL US ASSETS! Indeed, they have fallen all year and are worst in the world.
Instead buy eastern Asia or even dysfunctional Europe. Many Asian funds & indexes are now up 70+% this year, with currencies up another 20-35%, so effectively a double in terms of POS dollars. Clearly, the future is Asia (and so is the present).
https://www.bloomberg.com/news/articles/2017-10-10/is-gold-really-a-good-hedge
Well lets go to the hedge, no hedge crowd.
Yep, gold’s rep as a hedge against inflation is rather bogus. It’s not a hedge against a market meltdown either, as gold drops when everything else is crashing. Gold is perhaps a hedge against government collapse. But that’s not in the cards anytime soon. Neither is a market meltdown, imho.
As I posted recently, buy any bitcoin pullback as it’s going to new highs based on the chart. Very impressive recovery from the sell-off. Wish I’d bought more at $3000 last month. Will be a double within weeks.
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