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Not-So-Lonesome Doves.

If there was a message to be heard, it was received loud and clear.

If there was a message to be heard, it was received loud and clear.
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3 comments on “Not-So-Lonesome Doves.

  1. Harvey Darrow Cotton

    What a beautifully written, intelligent, and prescient article, Mr. H. Kudos. The way Mr. Powell was able to FedCommunicate a dovish pivot without FedSpeaking a dovish pivot struck that perfect balance of outdoving the dovish expectations of the market without spooking doves who aren’t superdoves. The Fed will do whatever it takes to maintain asset inflation in the teeth of a wall of worries about China, Mexico, tech crunches, recession worries, or anything else that could prevent Trump’s second term or data-driven institutional independence with a poetic blend of blink and you will miss them winks, nods, smoke signals, and tics. The Fed squared the circle of Presidential incompetence, political and party corruption, donor-class instruction, and wage suppression with aplomb and without pushing buttons. I don’t know any ‘pros’, but I know they were impressed and I am now #LongBonds #LongHighYield.

  2. Cuts in the Fed Funds rates may temporarily un-invert the 3m/10y. If the announced China + Mexico tariffs take effect, the negative impact on economic indicators, profit outlooks, and investor sentiment is unlikely to be eliminated by rate cuts alone. However, investors will also know that signs of movement toward trade deals – by either side – will trigger sharp rallies. There will be three puts to watch and everyone will be trying to figure out their level: the Trump put, the Xi put, and the AMLO put. Any guesses?

  3. This is 2000’s inversely inbred first cousin redux: there were a lot of death throes spikes on the way down. Hell, look at last autumn – a few similar lol “bull” spikes which were an alchemy of Fed fiat/Powell propaganda & buyback Fluffer Boys churning the usual suspects (like Tesla, AMD, UA, FAANGMAN, etc. ad nauseum….). Bonds and oil/copper still not having it, saying “mmmm hmmmm… whatever you SAY.”

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