Cognitive Instability And The Fed’s ‘Addiction Liability’
Over the last three weeks, we've variously suggested that despite the readily apparent YTD "rally bias" (if you will) for risk assets of all stripes, market participants have been mired in a narrative tug of war.
Nobody wants to risk fading a Fed that's clearly predisposed to being a bit more accommodative now that financial conditions have tightened up a bit (i.e., now that some steam has been let off and the risk of asset bubbles inflating further has been ostensibly reduced), but then again,
The issue I see with this post is no matter academically unblemished Kocic is in his theories and I did read and re-read his work the problem lies in the four issues in the fourth paragraph as stated by the author. Each of the four items is subject to the erratic on again off again behavior of this administration . Each reaction no matter how absurd seems to throw the market into a violent swings in either direction that impact chart behavior. The reactions are quite predictable in all but exact timing but the motives are clearly to levitate the stock market once again. When the entire establishment is complicit in this behavior even unblemished academic work falls by the wayside in it’s predictive quality. One day they will give a party and no one will come . What a surprise that will be I suppose ????
Functuoning addiction economy? Yeah, that’s it in a nutshell.