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REDRUM.
US equities were bludgeoned again on Thursday, falling for a sixth consecutive session and closing on the lows, with the Dow down nearly 1,200 points.
We seem to have reached that threshold beyond which fear feeds on itself, snowballing and tipping dominoes along the way, as discretionary investors and systematic players frantically and mechanically de-risk into an already falling market, sapping liquidity and driving up volatility, in a self-feeding "doom loop". ("Come and play with us, Danny.
When you have no sensible options for your money interest rates being what they are and stealth inflation being ignored you get bubbles and risk/games are on …big time…. Does not take a stiff wind to blow over a tree that has been propped from all sides to prolong it’s life thus shading your house… It is up to us all to keep that tree from falling on our house…., but usually the house is insured… Not the case here ..the damage could have been caused by almost any event that can’t be controlled , ignored or rationalized…
Um, excuse me Mr. President, your daily report card just arrived. By the way, FANTASTIC job at the presser last night. Really made me feel safe, secure and confident…
The consumer wealth effect is overstated imo but the impact of lower stock prices on mgmt actions is understated. If sustained expect cutbacks to disc spend, cap spend and possibly headcounts/raises/salaries.
the fed follows the 90 day treasury. 90 day rate is 1.45%, effectuve funds rate at 1.58% no cut yet.