Three Things That Can ‘Make It All Go Right Again’

Three Things That Can ‘Make It All Go Right Again’

How do things calm down? That's the main question on traders' minds this week. The simplistic answer is straightforward: Rates need to stop "raging," as it were. And folks need to stop speculating about "early" Fed tightening. And real yields need to stop rising. Because conceptually, real yields are the opportunity cost of doing anything other than sitting in a risk-free bond. If that opportunity cost rises, or even if the cost of choosing inflation-adjusted certainty becomes less punitive (i
Subscribe or log in to read the rest of this content.

2 thoughts on “Three Things That Can ‘Make It All Go Right Again’

  1. Re: “How do things calm down?”

    That’s a really good question to ponder — but more appropriate, after most people realize that the majority of USA vaccinations won’t begin until mid-Summer or Fall. I was shocked by that, but do your own DD. The various tiers and phases for vaccination are moving along, but slowly — and with 100’s of millions waiting about 5 months out, calm is not on the horizon.

    Crazy is on the horizon!

    1. Yeah we’re not out of this by a long shot is a pretty good description of a lot of the problems we are facing. I mean everyone should realize when everything thaws out and the police end up killing a few more people in questionable circumstances we can expect more protest activity including violent opposition to protesting from both Police and very angry Trump supporters needing a rage outlet. Employee Compensation per unit GDP was at its historic low for the past 70 years BEFORE the pandemic. Healthcare remains extremely expensive. People are still buried in debt including a lot of new fancy Covid care bills. The GOP has basically become the White Nationalist Fascist party. This round of stimulus is likely to wear off far before the economy begins to normalize and it will likely need a lot of stimulus to make that happen in anything less than a decade because the hit in 2008 was more limited and we didn’t even recover from that.

Speak your mind

This site uses Akismet to reduce spam. Learn how your comment data is processed.